SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

November 18, 2010 08:00 ET

Uniontown Energy Inc. Announces Agreement to Purchase Natural Gas Property

Shale Natural Gas Assets Show Excellent Potential

LAS VEGAS, NV--(Marketwire - November 18, 2010) - UnionTown Energy Inc. (OTCBB: INBH), a publicly traded and fully reporting American Issuer, announced that it has signed a purchase agreement with JayHawk Energy Inc. for the purchase of a coal seam natural gas property called the Uniontown Project located in Bourbon County, Kansas. 

The property is located in the vast Cherokee Basin, which straddles Kansas, Missouri, Arkansas and Oklahoma. The property size is about 45,000 gross acres. 

The Cherokee Basin is an intercratonic depression located in southeastern Kansas, southwestern Missouri and northeastern Oklahoma that has been producing gas for over 80 years from carbonaceous shales and coals. In the past fifteen years there has been a systematic exploitation of these unconventional reservoirs in the basin. New techniques are constantly being employed that work specifically in some parts of the basin but not in others including hydrofracturing. The coals are generally less than two feet thick and carbonaceous shales of the Cherokee Group generally average four feet thick. The productive coals and carbonaceous shales are found from 200 to 2,500 feet and the coals have ASTM rank of high volatile A.

Reported gas content in the coals 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. Water rates vary from a few barrels to over 1000 barrels a day. Initial completion practices began with single-zone completions until 2002, when the State of Kansas vacated the rules preventing commingling several zones in the same well specifically being produced for coalbed methane and shale.

The closing of the transaction contemplated by the agreement will occur no later than December 15th, 2010.

Shale natural gas potential was recently featured on CBS's 60 minutes with comments from Aubrey McClendon, the CEO of Chesapeake Energy, telling "60 Minutes" correspondent Lesley Stahl that "In the last few years, we've discovered the equivalent of two Saudi Arabias of oil in the form of natural gas in the United States. Not one, but two.

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. The Company's flagship property is located in Kansas within the Cherokee basin, which has been producing gas from shale and coal deposits for over eighty years and has 2.8 Tcf of potential recoverable CBM. 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; 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, international expansion, 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 Securities and Exchange Commission.

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