2010-01-07-2009-11-11

To buy 50% WI in 160 acres in Rush Willadel Field, Washington Co., CO.

In its first acquisition as an E&P, Recovery Energy Inc., Denver, (OTCBB: RECV) fka Universal Holdings, plans to acquire a 50% operated working interest in three producing wells on a 160-acre lease in Washington County, Colorado, from an undisclosed seller for approximately $1.125 million. The assets are in Rush Willadel Field. Gross production is approximately 38 barrels of oil per day from the D&J sands of the Dakota group at approximately 4,000-foot depths. Proved developed producing reserves are estimated to be 75,000 barrels of oil. Upside includes two additional drilling locations. A contracted operator is operating until Recovery is approved by the state. Recovery Energy CEO Jeffrey Beunier says, "This initial transaction…provides a starting point for Recovery Energy as we seek to build the company into a premier independent domestic oil producer." Recovery also has a 60-day option to acquire the remaining 50% of the working interest for $825,000 in cash. Recovery Energy changed its name in October to reflect its new focus on existing proven assets by using in-field drilling, recompletion and secondary recovery activities. The company will concentrate on opportunities in the Rocky Mountain, Midcontinent and Gulf Coast basins.