SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

March 28, 2011 06:30 ET

UnionTown Energy Close to Finalizing Second Oil and Gas Project in Montana

BILLINGS, MT--(Marketwire - March 28, 2011) -  UnionTown Energy Inc. (OTCBB: UTOG) is pleased to announce it is close to finalizing a definitive agreement (the "Agreement") to acquire a 1,480-acre oil and gas property in the Madison Formation in Montana.

The property is situated in a prolific oil and gas district, with more than 300 million barrels of oil and 500 billion cubic feet of natural gas produced to date within a 50-mile radius. Just 4 miles from the property, a single producing oil field has yielded in excess of 30 million barrels of oil.

UnionTown Energy considers the property to be a high-potential acquisition that could be brought to production quickly, at low cost and low risk to the Company. Two previously drilled wells have already determined the property sits atop a shallow oil accumulation. The Company has reviewed reports from the drilling, considered to be conservative, that estimate the property contains 2.4 million recoverable barrels of oil.

UnionTown believes the property has the potential to accommodate 17 shallow horizontal oil well locations.

Acquisition terms have been agreed upon with the leaseholders, and negotiations to complete the Agreement are now in final stages. This is the second major oil property acquisition UnionTown has announced in first quarter of 2011. Closing is expected to occur within two weeks.

Furthermore, the Company is on schedule to finalize the acquisition of the previously announced Musselshell Property.

Geologic Summary
The property is located within the geologic province known as the Sweetgrass Arch in Northwest Montana, which is one of the oldest producing oil and gas provinces in the Rocky Mountains, with continuous oil and gas production since the early 1920s.

About UnionTown Energy Inc.
UnionTown Energy Inc. (UTOG) 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

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, 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, 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 S.E.C.

Contact Information

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    Patrick Smyth
    Corporate communications
    Phone: (702) 530-3241
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