250-well agreement launches largest-ever drilling project for United Petroleum.KNOXVILLE, Tenn.--(BUSINESS WIRE)--Sept. 19, 1996--United Petroleum Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : UPET) finalized See finalization. an agreement Wednesday with Kastle Resources of Edinboro, Pa., to drill 200 oil wells in Ohio and 50 gas wells in Pennsylvania over the next two years. The agreement marks the largest drilling project undertaken to date by United Petroleum, which is currently drilling and operating wells in Kentucky and Missouri. United Petroleum's participation will be at a 75 percent level for the Pennsylvania drilling program and a 70 percent level for the Ohio oil wells, with Kastle providing the remaining investment. With the signing of the agreement, United Petroleum placed in escrow funds Noun 1. escrow funds - funds held in escrow cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money for the first 14 wells, seven in each state. Michael F. Thomas, chief executive officer of United Petroleum, stated that drilling will begin in Pennsylvania next week, with Ohio drilling operations to begin the first week in October. The initial schedule calls for the completion of 20 wells in Pennsylvania and 15 in Ohio by Dec. 31, 1996. The sites where United Petroleum and Kastle will drill are located within proven fields. Kastle currently operates 52 producing gas wells on the 5,000-acre field near Erie in Northwest Pennsylvania, and another 12 oil wells in its Central Ohio field. Well log data from the Pennsylvania field shows an average of 85,000 to 1 million cubic feet per day of gas per well. An average of 20,000 barrels of oil per year is being produced from the Ohio field. "In the past couple of months, we've put several pieces in place that are allowing United Petroleum to be poised to take advantage of high-value opportunities in the gas and oil industry," Thomas said. "Hiring Don Patton as our executive vice president for the Oil and Gas Division gave us 20 years of high-level experience in the exploration and production end of the business. Coupled with our $7.1 million convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. issued last month, we now have the depth of experience to locate and secure outstanding opportunities and the depth of capital to exploit them. "The Kastle deal is a perfect example of United Petroleum taking our gas and oil interests to the next level." Thomas said that United Petroleum has targeted a specific niche as part of its growth strategy, focusing on opportunities that are too small to interest major producers and too large for small independents to capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. . "The drilling program with Kastle is a prime example of the type of opportunities we'll be pursuing, and aggressively," Thomas said. United Petroleum is now producing and selling gas from the company's Bogar No. 1 well in Pike County Pike County is the name of several counties in the United States:
The company also is participating in a waterflood enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] program in Cass County Cass County is the name of nine counties in the United States:
"We've climbed the learning curve with our operations in Kentucky, and now, with Don's expertise, we're in a position to make intelligent decisions that will allow us to rapidly expand our drilling programs," Thomas said. United Petroleum owns gas and oil mineral rights to approximately 61,000 acres in Central and Eastern Kentucky through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Jackson-United Petroleum Corp. In addition to the company's gas and oil operations, United Petroleum operates 20 full-service auto care centers and convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. in Tennessee and Georgia through its wholly owned subsidiary, Calibur Systems, Inc. The company went public in 1993 and currently has 4.6 million shares of outstanding stock at an average volume of 50,000 shares per day. CONTACT: United Petroleum Corp., Knoxville Cindy McConkey or Robert Cathey, 423/584-0550 or Doug Keene, 423/688-0582 |
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