SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

March 23, 2011 06:30 ET

UnionTown Energy Inc. Closes on $2.5 Million Private Placement: to Issue 1 Million Shares at $2.50 per Share for Oil and Gas Property Acquisitions

BILLINGS, MT--(Marketwire - March 23, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) announced today that it will issue 1 million restricted common shares priced at $2.50 per share for a financing total of $2.5 million.

The 1 million restricted common shares will be issued to private investors in return for $2.5 million in cash, of which $610,000 has already been advanced to UnionTown Energy to fund down payments on oil and gas property acquisitions.

Of the first $610,000 advanced, $300,000 has been allocated and forwarded to the previous Musselshell owners to be used as proceeds to close on the Company's acquisition of the Musselshell Property, which was previously announced on March 17, 2011 and is now scheduled to close before the end of March.

The remaining $310,000 has been placed in trust with a vendor's lawyer in regards to the Company's contemplated second acquisition for which the terms are currently being finalized.

The remaining proceeds totaling $1.89 million will be deposited into the Company's accounts as received to fund the ongoing acquisitions and provide for general working capital.

Details surrounding the acquisitions will be announced as the agreements are concluded and executed.

President and CEO Darren Stevenson commented, "Our investors clearly understand our vision and agree with our value creation growth strategy as evidenced by their acceptance of this above market private placement."

This financing agreement is the first of a series the Company is contemplating to support its growth strategy of acquiring oil and gas exploration and development properties for production.

About UnionTown Energy Inc.
UnionTown Energy Inc. (UTOG) (the "Company") 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. The acquisition of the Musselshell Property is only the first property in the Company's land package acquisition strategy. For more information, 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, specifically statements relating to expectations regarding the closing of the Musselshell agreement, 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, 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

  • Contact
    Darren Stevenson
    President and CEO
    UnionTown Energy Inc.
    Phone: (702) 530-3241
    Email Contact