SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

October 04, 2011 06:30 ET

UnionTown Energy Inc. (UTOG) Expects Service Rig to Arrive This Week at New Miami Property to Install Oil Pump on #42-20H Well

The Company Is Poised to Begin Production on Its First Well, Marking Its Transition to an Oil Producer and Revenue Generator

BILLINGS, MT--(Marketwire - Oct 4, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) (PINKSHEETS: UTOG) is pleased to report that it expects a service rig to arrive this week at its New Miami property to prepare the recently drilled #42-20H well for production.

"We're excited to be so close to putting the well on pump and commencing production," said UnionTown's Chief Executive Officer Michael Butterworth. "This is undeniably a huge milestone for our company. The New Miami #42-20H will be our company's first producing well, and the initiation of production will formally mark our transition from an exploration-stage company to an oil producer and revenue generator."

The first order of business for the service rig crew will be to acidize the pay zone in the horizontal leg to encourage higher production rates. Next, they will swab the well back through the tubing. Once these steps are completed, the tubing will be removed and the pump installed. UnionTown expects to bring the pump online and commence oil production within seven to ten days of the arrival of the service rig.

Following commencement of production, the company estimates it will take about seven days to stabilize the pump and determine the flow rate. Based on this anticipated schedule of events, UnionTown expects that it will be able to report its first production results during the company's 4th quarter, which ends October 31.

Drilling on the New Miami #42-20H well was completed on June 19, 2011. The well 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.

As previously reported on April 11, 2011, the New Miami #42-20H is one of two initial wells the company plans to drill on the property. The company considers these two wells will be lower in exploration risk as they are offset from two previous vertical wells that have determined the New Miami property sits atop a shallow oil accumulation. UnionTown believes the property could accommodate up to 17 shallow horizontal oil well drill zones.

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

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