SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

May 31, 2011 10:00 ET

UnionTown Energy Inc. (UTOG) Completes Remainder of $3,000,000 Private Placement, Announces Teton River Drilling Program and Its Initial Funding

Drilling First Well of Initial 6 Wells Expected to Commence Within the First 2 Weeks of June

BILLINGS, MT--(Marketwire - May 31, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) is pleased to announce that it has received the remaining portion of the $3,000,000 private placement previously announced on April 27, 2011. The receipt of these funds provides the Company with the initial financing required to move forward with the drilling program on the Teton River property.

Initially the Company plans to drill 6 wells on Teton. The first six wells have now been staked and approval for drilling the first well is expected early next week. The Company expects that one of the six wells will be converted to an injection well once production starts.

UnionTown has completed negotiations with the operator and the drilling contractor for the first well. Drilling has been scheduled to start within the first 2 weeks of June. Each well is estimated to be drilled at a cost of $200,000. The funds for the first well have already been advanced in trust to provide for the drilling budget.

A consultant to the Company has met with a reservoir engineer to initiate the review of the existing reports and models. The reservoir engineer will be supplied with all the new data immediately after logging the first well to update and run existing models and recommend the production method.

"We are very excited about the Teton River prospects and the speed at which we can commence development of this property," commented UnionTown's President and CEO Darren Stevenson, "Obtaining results from these first wells will allow us to rapidly begin to prove up our estimated reserves and move towards our goal of near term oil production."

Negotiations with various investors are now underway for a second private placement, but no definitive terms have yet been agreed upon.

About UnionTown Energy Inc.
UnionTown Energy Inc. is an 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. The company has recently completed acquisitions of the Musselshell and New Miami properties. The company is also undertaking the acquisition of the Darby Block and Teton River properties, with both properties under contract. We recently commenced a drill program at New Miami and are moving rapidly on all our properties to bring wells to production. UnionTown continues to develop a strong pipeline of potential acquisitions with the goal to adding more highly prospective properties to our oil and gas land package. For more information about our company, please visit www.UnionTownEnergy.com.

Safe Harbor
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, drilling on the Teton property, successfully finding oil reserves, starting production, converting one of the wells to an injection well and securing $5,000,000 in financing 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
    Patrick Smyth
    UnionTown Energy Inc.
    Phone: (702) 530-3241
    Email Contact