Cleburne, TX - United Heritage Corporation announced the addition of 51 more stores carrying Heritage Lifestyle Lite Beef in one of its major customers, the Southern division of a large California-based supermarket chain.
"The number of stores carrying Heritage Lifestyle Lite Beef in the California supermarket chain has steadily increased since the product's introduction," said United Heritage CEO Walter G. Mize. "We started out in a dozen or so stores, and now our product will be carried in 100 out of the chain's 450 total stores in California and Nevada."
This addition should increase the volume of the chain's purchases by 50%, which brings projected total gross sales of Heritage Lifestyle Lite Beef for fiscal 1998 to approximately $4.4 million, up from $2.9 million the prior year.
This increase in gross sales of Heritage Lifestyle Lite Beef should dramatically increase cash flow for the Company's lite beef business, which already covers all the overhead for the Company, supporting the Company's efforts towards its primary goal, the development of its South Texas oil and gas field.
The original oil-in-place in the South Texas field, which contains over 10,500 acres in leases, was first estimated by J.R. Butler & Co., Houston oil and gas consultants, to be 168,770,026 barrels. This estimate was subsequently reviewed and accepted by Surtek, Inc., a petroleum engineering firm in Golden, Colorado. Surtek's laboratory tests of the alkaline- surfactant-polymer flood method of recovery indicate that it will produce an estimated 60% of the oil-in-place, or 100,354,000 barrels. Surtek's estimated cost of recovery for this oil is $7 per barrel and, utilizing an oil price of $16.50 per barrel, their evaluation shows an estimated future undiscounted net revenue of $1,077,765,100 and a present value, discounted at 10% of $686,436,150.
United Heritage is currently producing oil from already existing wells, utilizing a mobile swabbing unit, the Klaeger Oil Retrieval System. In addition, Company management says the 13-well pilot A-S-P project should be ready to produce earlier than previously expected.
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