United American Petroleum Corp. acquires 100% working interest of McKenzie lease in Pecos County, Texas

Source: United American Petroleum Corp.

United American Petroleum Corp. (OTCBB: UAPC.OB) announced on its 8-K Filing of December 5, 2011, it has acquired 100% working interest in the McKenzie lease in Pecos County, Texas, for a purchase price of $550,000 and 50,000 shares of restricted common stock. The project consists of one oil-producing well at a depth of 11,800 feet on 186 acres, and should add approximately $14,400 per month in oil revenues for United.
Tremendous success in the area has been demonstrated by Kinder Morgan Production Company, which has yielded 1,864 oil-producing wells. To date, 16,079 reservoirs have been discovered in the region affording extensive data on several oil and gas wells. Over 10 million barrels of oil were produced in the area in 2010.

The well is currently offline due to the discovery of a hole in the tubing and will require a minor work-over. The faulty section will be pulled, replaced, and is expected to produce an estimated 8 - 10 bbl per day, which was its most recent production rate prior to developing the hole in the tubing. In addition to the production from this current zone, several additional horizons (which are productive in the area) have been identified in the McKenzie well, which could be tested and potentially produced in the future.

Christian Negri, United American Petroleum's Chief Financial Officer, stated, "One of our integral models, which UAPC was founded upon, is the acquisition of oil-producing properties with exploitation opportunities. With that being said, UAPC is pleased to announce the acquisition of the JF McKenzie State #1 well. With the current production of this well, along with its booked reserves and "behind-pipe" potential, we believe it will be a key asset for the Company's portfolio. In combination with its current developments and production, the Company believes it is well positioned for rapid expansion."

For additional information regarding the Company's operations, projects, management team and other valuable information, please visit the Company's web site at www.unitedamericanpetroleum.com. To be placed on the Company's master email list and receive future press releases, progress reports and developments, please send an email to ir@unitedamericanpetroleum.com or contact Investor Relations at +1 855-PETROL-1


Sign up for PennEnergy's eNewsletters
For Email Newsletters you can trust


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs