BILLINGS, MT--(Marketwire - Apr 28, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) announced yesterday that it had over subscribed the US$2,500,000 private placement announced on March 23, 2011.
The placement was increased to US$3,000,000 on April 21, 2011. The Company will issue 1,200,000 restricted common shares priced at US$2.50 for a financing total of US$3,000,000.
The Company will direct US$1,000,000 of the proceeds to complete the non-refundable deposit portion of the Darby Property Purchase Agreement that was entered into on April 25, 2011.
Furthermore, the Company reports that negotiations are under way for a non-brokered, private placement for aggregate gross proceeds of up to US$5,000,000.
This potential financing is the second in a series the Company is contemplating to support its growth strategy of acquiring oil and gas exploration and development properties for production. Specifically, it is being contemplated that these funds will be allocated to the Darby Miller Mountain prospect drilling program and will be counted towards the Darby block purchase price.
About UnionTown Energy Inc.
UnionTown Energy Inc. is focused on the acquisition, exploration, development and production of oil and natural gas properties. Our strategy is to build a portfolio of energy producing assets in known and producing oil and gas fields throughout North America. With the completion of our acquisitions of the Musselshell Property, New Miami Property and the Darby Block Property, we're moving rapidly to bring the first wells to production. We're also in advanced stages of acquisition of other oil and gas properties, including the Teton River, and continue to develop a pipeline of additional potential acquisitions under consideration in the continental USA. For more information about our company, please visit www.UnionTownEnergy.com.
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to UnionTown, the potential reserves, production and ability to establish wells on the Musselshell, New Miami Prospect, Darby Block Property, and the Teton River, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the nature of business negotiations, the operational details of oil and gas properties, the competitive environment within the industry, the ability of UnionTown to expand its operations, the level of costs incurred in connection with UnionTown's expansion efforts, economic conditions in the industry and UnionTown's financial strength. UnionTown does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.