UHCP Glen Rose Petroleum Corp (MM)

United Heritage Corporation (NASDAQ: UHCP), a public company involved in the development of medium gravity crude oil assets, today announced its financial results for the three and nine months ended December 31, 2007. Following the sale of the assets of UHC New Mexico (the �UHC Sale�), the only remaining field owned by Company, the Wardlaw Field in Edwards County, Texas, is producing less than 10 barrels of oil per day. The Company is in the process of establishing a pilot project in the Wardlaw Field, which it believes can be completed by the end of March 2008, with a goal of increasing production there to approximately 135 barrels of oil per day. If the Company deems the pilot program to be successful, the Company would begin the process of obtaining required permits to commence significant additional injection programs to be drilled, which the Company believes may occur in the fourth quarter of 2008. Largely as a result of the UHC Sale, revenues decreased $229,593, or approximately 91%, from $253,904 for the three months ended December 31, 2006, to $24,311 for the three months ended December 31, 2007. Total operating costs and expenses increased $1,035,252, or approximately 141%, from $735,914 for the three months ended December 31, 2006, to $1,771,166 for the three months ended December 31, 2007. The Company�s net loss decreased $1,116,926 or approximately 178%, from $627,150 for the three months ended December 31, 2006, to $1,744,076 for the three months ended December 31, 2007. Paul D. Watson, Chief Executive Officer of United Heritage Corporation and Chairman of its board of directors said, �We are embarking on a new course at United Heritage, and we believe the financial results reported today are largely unrelated to our business as we currently plan to build it. Our experts believe that a chemical injection system should result in economic secondary production in the Wardlaw Field by increasing underground pressure. We have a pilot plan in place that is anticipated to result in production levels of approximately 135 barrels of oil per day. By year-end 2008, we hope to be in the permitting process for additional injection sites.� Revenues decreased $883,729 or approximately 97%, from $909,995 for the nine months ended December 31, 2006, to $26,266 for the nine months ended December 31, 2007. The Company�s total operating costs and expenses decreased $86,454, or approximately 3%, from $2,624,662 for the nine months ended December 31, 2006, to $2,538,208 for the nine months ended December 31, 2007. Net loss decreased $1,525,571, or approximately 76%, from $2,010,414 for the nine months ended December 31, 2006, to a net loss of $484,843 for the nine months ended December 31, 2007. This decrease in net loss is primarily attributable to Lothian Oil Inc., formerly the Company�s largest shareholder, forgiving a $1.8 million claim asserted against the Company, offset by an expense of approximately $1.2 million related to compensatory warrants issued. The Company�s financial statements have been prepared on a going concern basis which contemplates the realization of assets and the liquidation of liabilities in the ordinary course of business. As of the filing date of its quarterly report on Form 10-QSB, the Company has incurred substantial losses from operations and has a working capital deficit which raises substantial doubt as to its ability to continue as a going concern. United Heritage had net loss of $484,843 for the nine months ended December 31, 2007 and a net loss of $11,435,134 for the fiscal year ended March 31, 2007, and, as of the same periods, it had an accumulated deficit of $43,483,989 and $42,999,146, respectively. Unless the Company is able to obtain the financing needed to develop its properties, there can be no assurance that it will be able to continue as a going concern. About United Heritage Corporation United Heritage Corporation, founded in 1981 and based in Dallas, TX, is focused on the development of on-shore oil and gas assets. The company has four leases covering 10,500 acres in the Wardlaw Field located in Edwards County, TX. A report received by the Company in 1984 estimated 168 million barrels of oil in place on the property. The oil is categorized as "medium crude," the deposits are in the medium gravity range of heavy oil at 20-25 API gravity. The Company believes that ultimate recovery could be in the region of 40%. Management believes its acreage has always held valuable reserves, but the technology to properly extract the reserves is still being considered. Some oil production has already been established from the field, and the Company expects to implement a pilot program on this acreage during the second quarter of 2008. Private Securities Litigation Reform Act Safe Harbor Statement: All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as codified in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including any projections of earnings, revenue, cash or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. 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. The risks and uncertainties include our limited capital resources and limited access to financing and our ability to overcome negative publicity relating to the restatement of our proved reserves. United Heritage Corporation assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. UNITED HERITAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) � � THREE MONTHS ENDED December 31, NINE MONTHS ENDED December 31, 2007 � 2006 2007 � 2006 OPERATING REVENUES Oil and gas sales $ 24,311 $ 253,904 $ 26,266 $ 909,995 TOTAL OPERATING REVENUES � 24,311 � 253,904 � 26,266 � 909,995 OPERATING COSTS AND EXPENSES Production and operating 21,672 406,736 82,351 1,040,920 Depreciation and depletion 338 156,621 1,014 503,293 Accretion of asset retirement obligation 1,244 � 3,732 � General and administrative 1,636,778 172,557 1,998,113 1,080,449 Bad debt expense 41,406 � 243,814, � Put option expense � 69,728 � � � 209,184 � � TOTAL OPERATING COSTS AND EXPENSES � 1,771,166 � 735,914 � 2,538,208 � 2,624,662 LOSS FROM OPERATIONS (1,746,855 ) (482,010 ) (2,511,942 ) (1,714,667 ) OTHER INCOME (EXPENSE) Gain on forgiveness of debt � � 1,780,710 � Gain on sale of investments � � 303,155 � Gain on sale of property and equipment 5,000 � 13,351 � Interest expense � (2,221 ) � (145,140 ) � (70,117 ) � (295,747 ) Income (Loss) before income tax (1,744,076 ) (627,150 ) (484,843 ) (2,010,414 ) INCOME TAX BENEFIT � � � � � � � � NET INCOME (LOSS) $ (1,744,076 ) $ (627,150 ) $ (484,843 ) $ (2,010,414 ) Income (Loss) per share (basic) $ (0.26 ) $ (0.10 ) $ (0.07 ) $ (0.32 ) Weighted average number of shares (basic) � 6,778,886 � 6,446,850 � 6,557,931 � 6,446,850 UNITED HERITAGE CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS � � December 31, 2007 � March 31, 2007 (Unaudited) ASSETS CURRENT ASSETS Cash $ 229,260 $ 1,671,672 Accounts receivable 19,056 470,670 Inventory 37,201 31,417 Prepaid expenses � 12,716 � 34,909 Total current assets � 298,233 � 2,208,668 INVESTMENT in Cano Petroleum common stock, at fair value (restricted) � 1,827,000 OIL AND GAS PROPERTIES, accounted for Using the full cost method, net of accumulated depletion and depreciation of $0 at December 31 and March 31, 2007 Proved � � Unproved � 5,914,783 � 5,864,587 � 5,914,783 � 5,864,587 PROPERTY AND EQUIPMENT, at cost Equipment, furniture and fixtures 8,751 74,244 Vehicles � 6,752 � 158,452 15,503 232,696 Less accumulated depreciation � (5,141 ) � (149,392 ) � 10,362 � 83,304 TOTAL ASSETS $ 6,223,378 $ 9,983,559 LIABILITIES AND SHAREHOLDERS� EQUITY CURRENT LIABILITIES Accounts payable $ 142,038 1,835,148 Accounts payable, related party 10,000 $ 797,088 Accrued expenses 343,750 343,750 Accrued interest, related party � 451,485 Accrued put option liability � 2,936,370 � Total current liabilities � 3,432,158 � 3,427,471 LONG-TERM LIABILITIES Asset retirement obligation 86,674 82,942 Note payable, related parties � 2,941,983 Accrued put option liability � � 2,727,186 Total liabilities � 3,518,832 � 9,179,582 SHAREHOLDERS� EQUITY Preferred stock, $.001 par value, 5,000,000 shares authorized, none issued � � Common stock, $.001 par value, 125,000,000 shares authorized; 7,592,456 and 6,446,850 shares issued and outstanding, respectively: 7,593 6,447 Additional paid-in capital 46,180,942 43,796,676 Accumulated deficit � (43,483,989 ) (42,999,146 ) Total Shareholders� Equity � 2,704,546 � 803,977 TOTAL LIABILITIES AND SHAREHOLDERS� EQUITY $ 6,223,378 9,983,559