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UPDA Subsidiary Canyon Creek Announces First Oil and Gas Sales in Coleman County

Posted on: Wednesday, 9 November 2005, 09:00 CST

Canyon Creek Oil & Gas Inc. (a joint venture of Universal Property Development (OTCBB:UPDA) and USProduction & Exploration, LLC. (USPX), a privately held Company, announced today that during October it sold 170.73 barrels of oil and 988 mcfg from 4 wells located on its Hagler leases. Canyon Creek representatives said they were very pleased with these initial results since they represent only a partial month of production from only 4 of the 12 producers at the Hagler site. This represents Canyon Creek's first reported sale of oil and natural gas.

The casinghead gas is sold to WTG and the oil is sold to Sunoco Partners.

In early October, Canyon Creek started delivering casinghead gas into a low-pressure pipeline operated by WTG. The gas is then transported to the Jameson plant for processing. The pipeline pressure recorded at the delivery point is approximately 80 psi. As reported earlier, the gas purchase and processing agreement provides for Canyon Creek to also receive a percentage of the liquids processed at the WTG Jameson processing plant.

Canyon Creek has encountered more gas from these wells than it originally anticipated. To move the additional gas and increase sales, Canyon Creek has ordered a larger Quincy 270 vacuum pump to replace the Quincy 240 currently installed. The new pump is scheduled to arrive in 10 days. Once it is delivered and installed, the casinghead gas sales are expected to exceed 100% of the original projections. Oil production should increase as well.

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 - News) 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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