SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

March 31, 2011 06:30 ET

UnionTown Energy Concludes Terms of Definitive Agreement to Acquire the "New Miami" Oil and Gas Property in Northern Montana

As Part the Agreement, the Company Has Issued a Non-Refundable $300,000 Advance Toward the Purchase Price

BILLINGS, MT--(Marketwire - March 31, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) today announced it has reached an agreement on 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.

The closing documents are in the process of being finalized, and the agreement is slated to be completed by the middle of April 2011.

As previously reported by the Company, the northern Montana 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 New Miami to be a high-potential acquisition that could be brought to production quickly, at low cost and low risk. 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.

"We're excited to have reached this important milestone in our acquisition of the New Miami property, which we believe represents a great opportunity for our shareholders," said UnionTown Energy President and CEO Darren Stevenson. "We intend to move ahead rapidly with a horizontal drill program to initiate exploitation of the available resource."

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, its ability to enter into a definitive agreement for the New Miami property, the amount of wells which may be possible on the New Miami 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
    UnionTown Energy Inc.
    Phone: (702) 530-3241
    Email Contact