United Heritage Corporation: Cato and Wardlaw Update; Restatement of Financial Statements for Fiscal Years 2001 and 2000; $20 m
30 Juin 2006 - 4:20PM
PR Newswire (US)
MIDLAND, Texas, June 30 /PRNewswire-FirstCall/ -- United Heritage
Corporation (NASDAQ:UHCP) (the "Company") announced today that, as
a result of the investment by Lothian Oil Inc. ("Lothian") under
the Exploration and Development Agreement dated October 7, 2005,
production at its Cato San Andres Unit ("Cato Unit") has increased
to approximately 170 barrels of oil equivalent per day from 40
producing wells. The Cato Unit has a total of 299 wells. From
January 1, 2006 through May 31, 2006, Lothian has invested more
than $3 million in infrastructure and field development at the Cato
Unit. Additionally, pursuant to the Exploration and Development
Agreement, Lothian has committed to an investment of in excess of
$1 million for a multi- lateral horizontal pilot drilling program
in two locations at the Wardlaw Field ("Wardlaw"). Engineering and
preparatory work is already underway and the drilling program is
expected to commence in August 2006. The Company also announced
today that, in addition to restating its financial statements for
the fiscal years ended March 31, 2005 through March 31, 2002, it
also intends to restate its financial statements for the fiscal
years ended March 31, 2001 and March 31, 2000. The decision to
include the two additional years was based upon the review of the
recently completed independent engineering reports and discussions
among management, the Board of Directors (including the Audit
Committee members) and independent consultants. As previously
announced, the restatement is focused on the reserves reported for
the Cato Unit and the Wardlaw Field. Although a final determination
has not yet been made regarding the changes to the reserves
reported, the restatement will reduce the amount of proved reserves
included in the Company's financial statements during the two
additional fiscal years at issue. Due to the restatement, the
Company was not able to file its Annual Report on Form 10-KSB for
the fiscal year ended March 31, 2006 by the due date, June 29,
2006. The Company intends to file the Annual Report by July 14,
2006, but no assurance can be given that the filing will be made by
that date. The Company will file a Form 12b-25 with the Securities
and Exchange Commission to delay for up to fifteen days the filing
of its Annual Report on Form 10-KSB. The Company also announced
that on June 16, 2006 the Company, its wholly owned subsidiary, UHC
New Mexico Corporation ("New Mexico"), Lothian and two of Lothian's
wholly owned subsidiaries (Lothian Oil (USA) Inc. and Lothian Oil
Texas I Inc.), entered into a series of agreements with Sterling
Bank relating to a line of credit agreement originally advanced to
Lothian and its aforementioned subsidiaries. The $20 million credit
facility may be used for: (i) capital expenditures in relation to
the development of the properties used to secure the credit
facility; (ii) payment of fees and expenses under the credit
agreement; and/or, (iii) for general corporate purposes. As of June
16, 2006, there was $3,449,000 in principal and $14,948 of accrued
interest outstanding on the credit facility. As previously
announced, United Heritage Corporation is merging with Lothian Oil
Inc., which operates and continues to develop the Company's oil and
gas properties. Upon completion of the merger, the Company will
change its name to Lothian Oil Inc. and will own and operate six
properties in New Mexico and Texas. United Heritage Corporation is
an oil and gas exploration and production company based in Midland,
Texas. Through its subsidiaries, it holds four leasehold properties
in Edwards County, Texas and Chaves and Roosevelt Counties, New
Mexico. Lothian Oil Inc. is an oil and gas exploration and
development company that acquires and manages oil and gas
properties that have recognized and unrealized value. Headquartered
in New York, Lothian Oil Inc. has offices in Midland, Texas and
Artesia, New Mexico. Lothian Oil Inc. currently operates oil and
gas properties in the Permian Basin of southeast New Mexico. All
statements in this news release that are not statements of
historical fact, including statements about the expected completion
of the merger, are forward-looking statements. These statements are
based on expectations and assumptions as of the date of this press
release and are subject to numerous risks and uncertainties, which
could cause actual results to differ materially from those
described in the forward-looking statements. Many of these risks
and uncertainties are identified in filings made by United Heritage
with the Securities and Exchange Commission. United Heritage
assumes no obligation to update these forward-looking statements,
and does not intend to do so. Please refer to the risk factors and
other information included in the Form 10-KSB and other filings
filed by United Heritage with the Securities and Exchange
Commission Contact: United Heritage Corporation C. Scott Wilson,
Chief Executive Officer Tel: (432) 686 2618 Fax: (432) 686 2644
DATASOURCE: United Heritage Corporation CONTACT: C. Scott Wilson,
Chief Executive Officer, United Heritage Corporation,
+1-432-686-2618, or Fax, +1-432-686-2644
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