Atlantis Capital Group LLC Engaged by United Heritage Corp. to Secure Up to $3 Million for First-Phase Oil & Gas Production.Business Editors CLEBURNE, Texas--(BUSINESS WIRE)--March 2, 2000 United Heritage Corp. (Nasdaq:UHCP), an independent oil and gas exploration and development company with an estimated 265 million barrels of oil-in-place and 25.4 million barrels of proven reserves, today announced that it has engaged Los Angeles-based Atlantis Capital Group LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control to secure up to $3 million for the first phase of the company's oil and gas production plan. The plan calls for the extraction of up to 1,000 barrels of oil daily and 1 million cubic feet of gas daily once the plan is fully implemented. In a signed letter of agreement, United Heritage engaged Atlantis Capital Group LLC to advise the company on issues of capital structure, valuation, market positioning and pricing of the securities associated with the $3 million private placement of equity contemplated by the company. Terms of the engagement and the prospective private placement of equity were not disclosed. Management at United Heritage and Atlantis Capital have been discussing a possible equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. for several months now during which time Atlantis has become very familiar with the company's two leasehold properties in southwest Texas and southeastern New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . United Heritage and Atlantis Capital have held substantive discussions on the company's multi-phase oil and gas production plan at both properties as well as its beef operation. Proceeds from the financing would be primarily used for production of oil and natural gas at the southeastern New Mexico property with allocations for shallow-well drilling and oil production at the southwest Texas property to achieve a combined average of 1,000 barrels of oil daily and 1 million cubic feet of gas daily. A small portion of the financing would be allocated to beef operations. Since purchasing the 20,000-acre New Mexico property in June last year, management has been evaluating the previous production logs, studying engineering data, and field-inspecting the 294 existing well bores to develop a multi-phase production plan. The first phase of the plan will be undertaken by the company itself; the second phase may also be financed and implemented by the company but a working partnership with a larger production partner may be negotiated. A byproduct by·prod·uct or by-prod·uct n. 1. Something produced in the making of something else. 2. A secondary result; a side effect. Noun 1. of the aforementioned analysis is management's conclusion that the original "oil-in-place" estimated by Pecos Petroleum Engineering may have been quite conservative. Management believes that based on the "volumetric volumetric /vol·u·met·ric/ (vol?u-met´rik) pertaining to or accompanied by measurement in volumes. vol·u·met·ric adj. Of or relating to measurement by volume. approach" to calculating the oil reservoir An oil reservoir, petroleum system or petroleum reservoir is often thought of as being an underground "lake" of oil, but it is actually composed of hydrocarbons contained in porous rock formations. , as much as 240 million barrels may be substantiated. The company is in the process of initiating an independent engineering study to re-assess the oil-in place at this property. The New Mexico property, one of two held by the company, is located in the prolific Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of southeastern New Mexico. The property has 294 existing well bores, and is currently producing approximately 2,000 barrels of oil monthly from 54 wells and 9 million cubic feet of natural gas monthly from 19 wells. The oil is classified as West Texas Sour, exhibiting an API gravity The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light a petroleum liquid is compared to water. If its API gravity is greater than 10, it is lighter and floats on water; if less than 10, it is heavier and sinks. of 22, which is a medium-weight crude desirable by most refiners. The company is presently securing an average of $24.75 gross per barrel (near West Texas intermediate prices) of oil sold and $1.80 per thousand cubic feet of gas sold. Currently, a 3.5-mile pipeline connects 19 gas wells that transport the gas to the purchaser. About Atlantis Capital Group LLC Established in 1993, Los Angeles-based Atlantis Capital Group LLC is a boutique corporate finance and advisory firm specializing in equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay through private placements ranging $1 million-$25 million. Atlantis Capital works primarily with publicly held corporations with market capitalizations Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. up to $250 million. The firm, on occasions, also assists private companies, backed by high-caliber management, preparing to become public. About United Heritage Corp. Based in Cleburne and Ft. Worth, Texas, United Heritage Corp. is an oil and gas exploration company with 10,500 leasehold acres in the Val Verde Val Verde may mean:
Through independent surveys by consulting engineers, the company's oil-in-place is estimated to be in excess of 265 million barrels with 25.4 million barrels in proven reserves thus far. United Heritage also purveys a line of specialized premium beef products under the brand name Heritage Lifestyle LiteBeef(R), which is marketed through several regional supermarket chains and over the Internet at (www.internetbeef.com). This news release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the company's periodic filings with the U.S. Securities and Exchange Commission. |
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