For the three months ended September 30, 2007, natural gas sales revenue was $0.45 million, compared to $35,528 for the same period during 2006. The record revenue increase of 1,258% was a result of increased production from Universal Property Development and Acquisition Corporation’s (UPDA) Texas subsidiaries and the acquisition and expansion of Heartland Oil and Gas.
In the third quarter, oil and condensate sales revenue was $11.82 million, compared to $0.11 million for the same period during 2006, an increase of over 11,000%.
Chris McCauley, vice president of UPDA, said: We continue to focus on expanding revenues and the accumulation of assets as we build an integrated energy holding company with subsidiaries concentrating on particular segments of the industry.
While there are significant capital expenditures and integration costs associated with this growth, Continental have already reported operating income less than six months after acquisition by UPDA and Heartland’s drilling program is showing impressive results in a very short period of time. As these subsidiaries mature and UPDA continues the execution of its business strategy, we expect further success to result.
