SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

October 31, 2011 06:30 ET

UnionTown Energy Inc. (UTOG) Begins Pumping Oil at New Miami Property in Montana

Well #42-20H Represents the First of 17 Horizontal Wells the Company Could Potentially Drill on the 1,480-Acre Northwest Montana Property

BILLINGS, MT--(Marketwire - Oct 31, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) (PINKSHEETS: UTOG) is pleased to report that it has completed Well #42-20H on its New Miami Property in Montana and commenced pumping oil, marking the first oil well that the Company has brought online for production.

The company anticipates it will take approximately ten days to stabilize the flow rate and tune the pump.

"We are thrilled to have begun producing oil at New Miami in our Company's 4th quarter," said UnionTown's Chief Executive Officer Michael Butterfield. "There is a real sense of excitement among our team as we have now officially graduated from being an exploration Company to an oil producer. This marks the crucial transition our investors have been anticipating and we look forward to bringing you similar success stories in the near future."

The New Miami #42-20H is one of two initial wells UnionTown had planned to drill at this property based on what the Company considered to be the lowest in exploration risk as they are offset from two previous vertical wells, which determined the property sits atop a shallow oil accumulation.

UnionTown estimates that its New Miami Property could accommodate as many as 17 horizontal wells. Well #42-20H was designed to horizontally penetrate and expose approximately 2,000 feet of the Sun River Dolomite pay zone (the upper three to five feet of the Madison Formation). During the horizontal drilling process, two secondary Madison Formation pay zones were also encountered.

The New Miami Property comprises more than 1,480 acres in the Sweetgrass Arch area of northwest Montana.

About UnionTown Energy Inc.

UnionTown Energy Inc. is a fully reporting, exploration-stage company that is building towards becoming an oil and gas producer. We are proudly engaged in the acquisition and exploration of oil and natural gas properties located within America's borders. For more information about our company, please visit www.UnionTownEnergy.com.

Safe Harbor

The information in this release includes forward-looking statements. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this release. Although the Company believes that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. These forward-looking statements, specifically statements relating to expectations regarding commercial viability or production from the New Miami #42-20H well 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. You should carefully review the information disclosed within the section entitled "Risk Factors" contained in the Company's Current Report on Form 10Q/A filed on September 23, 2011, as well as the information contained in this release, when assessing the Company and its business. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact
    Patrick Smyth
    Vice President of Finance
    Email Contact
    (702) 530-3241