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UNITED PETROLEUM SIGNS LETTER OF INTENT FOR JOINT VENTURE TO DEVELOP NATURAL GAS FIELDS; ACQUIRES ADDITIONAL ACREAGE

 Forecasts Sales and Net Income Gains, Annual Meeting Told
 KNOXVILLE, Tenn., July 19 /PRNewswire/ -- United Petroleum Corporation (OTC: UPET), operators of auto service centers and developers of natural gas properties, has signed a Letter of Intent with the Eastern Group, a major natural gas exploration, production and marketing company with some $250 million in annualized sales, to establish a joint venture for the development of its natural gas fields in Jackson County, Kentucky, Michael Thomas, United Petroleum's President, told stockholders attending the company's Annual Meeting here yesterday. Mr. Thomas said that the Letter provides that Eastern is committed to contribute a minimum of $750,000 within nine months of the signing of a definitive agreement and includes incentives for Eastern to invest additional funds as the drilling progresses.
 Mr. Thomas also announced that the company has acquired leases of an additional 25,000 acres adjoining its existing holdings which brings the company's total holdings under lease to approximately 61,000 acres. "This additional acreage magnifies the already promising outlook for the company's natural gas operations," Mr. Thomas said and "initial natural gas deliveries will commence before year end when connection is completed to the pipeline and will accelerate next year as additional wells are completed."
 Mr. Thomas told stockholders that United Petroleum expects to report record sales and earnings for the first six months of 1994 and that full year 1994 sales and net income will substantially exceed the $12 million sales and net income of $185,000, or $.02 per share, reported for 1993.
 Mr. Thomas said, "The company's Calibur Auto Service Centers are continuing to experience significant growth in revenues and profitability particularly from express lube centers at three locations where current services also include car wash, Pennzoil gasoline, convenience store and detail shop. Calibur expects to add lube centers at an additional six locations in Tennessee and Georgia where they can be accommodated without the need for additional property acquisition.
 "The Pennzoil distribution agreement," he added, "is opening excellent opportunities for United Petroleum at both the wholesale and retail levels in a territory which extends from Lexington, Kentucky south to Atlanta, Georgia and from Nashville, Tennessee east to Asheville, North Carolina. The Company is taking steps to serve additional territory which Pennzoil has agreed to grant as soon as the company is ready."
 -0- 7/19/94
 /CONTACT: L. Douglas Keene, Jr., chief financial officer of United Petroleum, 615-688-0582/
 (UPET)


CO: United Petroleum Corporation; Eastern Group ST: Tennessee, North Carolina, Kentucky, Georgia IN: OIL AUT SU: JVN ERP

LG-WB -- NY080 -- 6974 07/19/94 13:39 EDT
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Publication:PR Newswire
Date:Jul 19, 1994
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