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Austin, TX, March 8, 2013 (GLOBE NEWSWIRE) -- United American Petroleum Corp. (OTCBB:UAPC) ("UAPC" or the "Company") is pleased to announce that over the last forty-five days it has secured financing from two different funding sources, JMJ Financial and Asher Enterprises, Inc.
JMJ Financial provided the Company $50,000 in connection with a Promissory Note and may lend the Company an additional amount up to $310,000 under the note. Asher Enterprises, Inc., via a Convertible Note, provided UAPC with $103,500 of funding at an interest rate of 8% per annum. Detailed information regarding these funding initiatives can be found in the Company's recent Form 8-K filing, filed with the Securities and Exchange Commission on March 7, 2013.
Michael Carey, Chief Executive Officer of the Company, stated, "This funding affords the Company the opportunity to focus on its production efforts and allows us to expedite the scheduling of workovers on the Company's leaseholds. To date, we have been extremely successful in increasing production through workovers of existing wells and will utilize these capital contributions to continue fulfilling our business objectives. We are extremely pleased to have met the investors lending criteria and are delighted to have them on board with us for potential future endeavors."
As a result of the funding, UAPC is pleased to announce the immediate scheduling and preparation to begin workovers on three leases: Merrick Davis, Lane Heady and Crouch.
The Merrick Davis lease is 300+/- acres located in Shackleford County, Texas with acreage that will allow for additional potential new drills in the future. There are currently 12 oil wells producing approximately 6-8 barrels (BBLS) of oil per day on the Merrick Davis lease. The Company plans to perform wellbore cleanouts, stimulations and replace outdated and broken equipment to ensure all wells are back online and producing at high capacity. UAPC estimates post workover gross production to be approximately 15-20 barrels of oil per day.