SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

April 01, 2011 06:30 ET

UnionTown Energy Advances Deposit on Third Oil and Gas Property Acquisition

Company Provides Update on Closing Status of Musselshell and New Miami Property Acquisitions

BILLINGS, MT--(Marketwire - April 1, 2011) -  UnionTown Energy Inc. (OTCBB: UTOG) is pleased to announce that it has advanced $100,000 in escrow as a deposit towards the acquisition of the Company's third oil and gas property acquisition.

Details surrounding the acquisition will be announced as agreements are finalized and executed over the next few weeks.

"We believe this acquisition will be another important building block to our portfolio," said UnionTown President and CEO Darren Stevenson. "We are moving as quickly as possible to lock up the acreage we have identified as having the most potential for producible oil and gas reserves." 

This is the third property acquisition the Company has initiated over the last three weeks.

Update on previous acquisition announcements

1. UnionTown Energy has reached an agreement on the material terms of a definitive agreement to acquire the "New Miami" oil and gas property and issued a non-refundable advance payment of $300,000 towards the purchase price. Closing is slated to occur by the middle of April 2011. New Miami is located on the Madison Formation in northern Montana. Two previously drilled wells have already determined the property sits atop a shallow oil accumulation. The Company has reviewed reports from the previous drilling that estimate the property contains 2.4 million recoverable barrels of oil.

2. UnionTown Energy has finalized the closing documents for its acquisition of the previously announced Musselshell Property. The closing is pending the filing of the required disclosure documents to meet regulatory requirements. Uniontown now expects the transaction to close during the coming week. The Musselshell property is located on the Heath and Amsden Formations in central Montana. The Company believes that the western half of the property, which lies atop the Heath, has the potential to support 17 horizontal drill sites with 2,000 foot horizontal legs. Seismic data on the eastern half of the property, which covers the Amsden Formation, also shows exploration potential. A new geological report, previously announced on March 22, 2011 has nearly tripled the Company's previous estimate of the recoverable oil reserve at Musselshell to 10.4 million barrels.

About UnionTown Energy Inc.

UnionTown Energy Inc. 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 regional oil fields throughout North America. For more information, 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 and its ability to enter into a definitive agreement for the referenced property, 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.

Contact Information

  • Contact

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