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UPDA Subsidiary Canyon Creek Acquires 267.73 Acre Lease in Boyle Field, Starr County, Texas

Posted on: Monday, 31 October 2005, 09:01 CST

Canyon Creek Oil & Gas, Inc. (a Joint Venture of USProduction & Exploration, LLC (USPX), a privately held Company, and Universal Property Development and Acquisition Corporation (OTCBB:UPDA)) has completed the acquisition of a 266.73-acre oil and gas lease in Starr County, Texas. Canyon Creek has forwarded the lease documents and assignment and the bill of sale to the Starr County Clerk's Office for recording.

The Company will hire an engineering firm to oversee the implementation of a water flood project to recover the maximum amount of oil from the reservoir. Once the water flood procedure is fully operational, the Company projects monthly cash flow, assuming prices of $57.00/barrel of oil and $9.50/mcfg, at nearly $1 million, after deducting for lease royalties, operating expenses and taxes.

The lease is located in the Boyle Field, an oil field that has produced over 1,259,000 barrels of oil. The Company conservatively estimates the remaining reserves total over 1,283,000 barrels of oil and 242,900 mcfg.

The purchase agreement provides for Canyon Creek to acquire 102 additional acres on which it expects to close within 30 days. The Company intends to drill and complete ten additional wells during the next twelve months to further develop the oil reserves. Oil production is projected to reach 1,000 barrels of oil per day when the lease is fully developed.

"This leasehold acquisition in Starr County is significant because it adds proven reserves to our portfolio," said Canyon Creek's president, Donald Orr. "We know the oil is there and the geology is straightforward. We are confident this field has many years of production ahead of it."

Canyon Creek Oil & Gas Inc. was formed in July 2005 as a joint venture corporation for the purpose of acquiring currently producing oil and gas properties, low risk drilling prospects and existing wells in need of state-of-the-art technology to improve profitability. Canyon Creek now has over 60 wells located on more than 2,000 acres in the Fort Worth basin. In addition to this most recent acquisition, the Company has also acquired properties located in the Inez Field in Victoria County and the Giddings Gas Field in Fayette County, Texas. Canyon Creek continues a revitalization program on all of its properties in order to improve production and bring more wells on line.

About UPDA

Universal Property Development and Acquisition Corporation (OTCBB:UPDA) focuses on the acquisition and development of proven oil and natural gas reserves and other energy opportunities through the creation of joint ventures with under-funded owners of mineral leases and cutting-edge technologies. For additional information visit: www.universalpropertydevelopment.com

About USPX

USProduction & Exploration, LLC, an independent production and exploration company located in Sugar Land, Texas, is engaged in the acquisition of oil and gas producing properties with multiple enhancement opportunities. USPX seeks high quality exploration drilling projects in conventional and unconventional reservoirs. The Company's approach to developing depleted reservoirs and unconventional gas is innovative: it combines horizontal, multilateral, with underbalanced drilling methods.

Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or described pursuant to similar expressions.

Source: Business Wire

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