SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

April 18, 2011 06:30 ET

UnionTown Energy Inc. Announces New Miami Property Drill Program and Appoints Operator

Company Provides Finance Update and Advances $800,000 for Full Drilling Budget for First Horizontal Well

BILLINGS, MT--(Marketwire - Apr 18, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) is pleased to announce that Sands Oil Company has been appointed operator of the recently acquired New Miami property and that they will conclude negotiations currently underway with a renowned World-Class Drilling contractor for the drill program.

UnionTown also confirms that it has advanced $800,000 for this drill program, representing the total drilling budget for the first well. Full details of the drilling contract, including the expected start and end dates of drilling activity, will be announced on completion of the drilling contract which is expected to occur later this week.

Initially, the Company plans to drill 2 back to back wells from the 17 identified drilling targets on the New Miami property. The first 2 targets, which have already been permitted, are considered to be low risk as they will be will be offset from 2 previous successfully drilled vertical wells. This will be the first of 2 horizontal wells to be drilled on the property.

The cash advanced for the program, has been provided from the $2.5 million private placement announced March 23, 2011. The advance, combined with funds for general working capital purposes, brings the total amount of funds advanced through the placement to $1.35 million. The remainder of the funds pursuant to the private placement, which was to complete by April 15th, 2011, will be advanced to the Company within the next 10 days. This modification of the agreement has been agreed to by both UnionTown and the investment group.

About Sands Oil Co.

Sands Oil Co. is a 3rd generation oil field development company based in Billings, Montana. The company was founded by the current operator's Grandfather who began production in this field in the 1930's. The Father of the operator discovered the Frett and George Field in the sweet grass arch in the 1970's as well as many others producing fields. Considered to one of the most experienced operators in the area, they have interests in over 100 Bakken wells.

About UnionTown Energy Inc.

UnionTown Energy Inc. is focused on the acquisition, exploration, development and production of oil and natural gas properties. Our strategy is to build a portfolio of energy producing assets in known and producing oil and gas fields throughout North America. With the completion of our acquisitions of the Musselshell Property and New Miami Property, we're moving rapidly to bring the first wells to production. We're also in advanced stages of acquisition of other oil and gas properties, and we have a pipeline of additional potential acquisitions under consideration. For more information about our company, 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, specifically statements relating to expectations regarding company properties, future exploration activities and the potential results of exploration activities on company 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, 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.

Contact Information

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