SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

March 22, 2011 14:10 ET

Estimate of UnionTown Energy Inc. (UTOG) Montana Oil Reserve Increases by Nearly 300% to 10.4 Million Recoverable Barrels New Report Reveals

BILLINGS, MT--(Marketwire - March 22, 2011) -  UnionTown Energy Inc. (OTCBB: UTOG), an Independent Oil & Gas Company, announced today that a new Geological Report has almost tripled the Company's previously estimated recoverable oil reserve at its Musselshell Property in central Montana. The new estimate has been determined at a potential recoverable oil reserve of 10.4 million barrels.

This reserve has been determined by an independent, third party geologist in the report titled: "Potential Reserves of the Heath and Amsden Formations in the Musselshell Prospect, Central Montana."

The report states:

"The potential reserves contained within the Heath and Amsden formations in the Musselshell Prospect, Montana, have been determined with established reservoir engineering methodologies... A development program utilizing horizontal wells accompanied with stimulation could recover approximately 10.4 MMBO."

In an interview earlier today, company President and CEO Darren Stevenson commented, "We are absolutely delighted. This report estimates a nearly 300% increase in the amount of recoverable oil previously estimated on the property. Combined with the other oil and gas properties in our acquisition pipeline, I look forward to further increasing the Company's reserves and implementing the work programs to bring these acquisitions into production."

Company Highlights

In conjunction with today's confirmation of the estimated reserves from the 7,000-acre Musselshell property, the Company has recently accomplished the following:

1. The appointment of Darren Stevenson as the new President and CEO of the Company. Mr. Stevenson is a successful oil and gas business development leader, who has delivered significant gains in revenues, profits and market share for companies such as Royal Dutch Shell PLC in The Hague, Netherlands. During his tenure at Royal Dutch Shell, he led a team that delivered over $1 billion USD in new business and was a recipient of a Shell Rainmaker award.

2. The acquisition of the Musselshell gas and oil property, located in the Heath Shale Formation in central Montana. Oil investors have referred to the Heath as "the mini-Bakken," after the well-known formation that turned western North Dakota into one of the country's top oil plays.

3. The share price of UTOG has almost doubled over the past month.

About UnionTown Energy Inc.

UnionTown Energy Inc. (UTOG) (the "Company") is focused on the acquisition, exploration, development and production of oil and natural gas properties. The Company is pursuing a strategy of building a portfolio of energy producing assets in known and producing oil fields throughout North America. The acquisition of the Musselshell Property is only the first step in the Company's property acquisition strategy. For more information, please visit www.uniontownenergy.com.

Safe Harbor

The information in this release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, actual results may differ materially. These forward-looking statements, specifically statements relating to expectations regarding the closing of the Musselshell agreement, future exploration activities and the potential results of exploration activities on these properties, involve risks and uncertainties that include, among others, fluctuations in natural gas and crude oil prices; the timely receipt of necessary permits and approvals; market demand for, and/or available supplies of, energy-related products and services; unanticipated project delays, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect the Company's financial results is included in its filings with the Securities and Exchange Commission.

Contact Information

  • Company Contact
    Darren Stevenson
    President
    UnionTown Energy Inc.
    Phone: (702) 530-3241
    Email Contact