SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

December 16, 2010 11:00 ET

UnionTown Energy Begins Work on Assessing Value for Large Production-Ready Natural Gas Reserves on Its Property

Henry Hub Spot Price of Natural Gas Expected to Rise in Coming Months as Demand Increases Possibly Making Company Asset Values Grow

LAS VEGAS, NV--(Marketwire - December 16, 2010) - UnionTown Energy Inc. (OTCBB: INBH), an Independent Oil & Gas Company, today announced that it has begun assessing the potential Natural Gas Reserves on its UnionTown Property as demand for natural gas increases and prices are expected to rise.

UnionTown recently signed a purchase agreement for a coal-seam, natural gas property located in Kansas. The property is located in the vast Cherokee basin, which straddles Kansas, Missouri, Arkansas and Oklahoma and has been producing gas from shale and coal deposits for over eighty years and has 2.8 Tcf of potential recoverable CBM.

The potential coalbed methane resource for this area is generally defined by the presence of four or more seams in the Cherokee Group. While it has yet to be determined how many of these coal seams in an individual well can be completed and produced, individual well reserve estimates have varied from as little as .1 BCF per 160 acres to over .5 BCF per 80 acres. 

Reported gas content in the coals in the Cherokee Basin varies from 5 to 450 scf per ton. Gas quality varies from 96% to 98% methane, 1% to 3%+ ethane +, 0.5%+ CO2 to 92% methane, a few percent nitrogen, and CO2 with BTU contents varying from 850 to 1050.

A Company spokesperson noted, "We believe that our property has excellent potential and will continue to carry out due diligence and research on the potential reserves. Natural Gas is in demand with the projected Henry Hub annual average spot price increasing from $3.95 per million Btu (MMBtu) in 2009 to $4.47 in 2010 and $4.58 in 2011."

About UnionTown Energy

UnionTown Energy Inc. is an Independent Oil & Gas Company whose focus is on the acquisition, development and production of oil and natural gas properties. The Company is pursuing a strategy of building a portfolio of energy producing assets that include coal bed methane, natural gas, shale gas, oil sands and deep natural gas throughout Western Canada and the United States. 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 involve risks and uncertainties that include, among others, fluctuations in natural gas and crude oil prices; 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 technologies, fluctuations in operating results, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about the Company's financial results are included in filings with the Securities and Exchange Commission.

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