SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

March 24, 2011 15:41 ET

UnionTown Energy Inc. (UTOG) Reports Positive Drill and Well-Logging Results at Musselshell

The Company Announces Well-Completion Plan to Initiate Oil Production

BILLINGS, MT--(Marketwire - March 24, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) today reported positive drill and well-logging results for the first well (Little Montana #1) drilled on the Musselshell oil and gas property in central Montana.

Little Montana #1 was drilled by the previous owner of the property at a cost of approximately $1.5 million. The well log results show the Heath Formation to be a potential producible zone.

Based on the positive findings in the results, the Company intends, on closing of the acquisition, to move forward immediately with its plan for completing Little Montana #1 to bring it online for production.

The Company's plan is to test the Heath Formation, complete the well and prove production from the Heath zone. Once the zone is proven and producing, the Company will be able to apply its horizontal drilling technology to exploit the well to its fullest potential.

It has been reported that similar horizontal drilling approaches in nearby wells have achieved initial production of approximately 340 barrels of oil per day. The State of Montana encourages horizontal drilling and has implemented an 18-month tax holiday on revenues.

"The drill and well-logging results from this first well are very encouraging, hence our interest in proceeding with the acquisition of the Musselshell property," said UnionTown Energy President and CEO Darren Stevenson. "The potential of the Heath formation is very exciting, and we plan to move forward to completion of Little Montana #1 as soon as we close on the property acquisition and permits are issued."

All existing reports have been provided to the State of Montana in order for UnionTown Energy to advance to the testing and completion phase.

The Musselshell property comprises 7,000 acres and may support 16 horizontal drill sites with 2,000 foot horizontal legs.

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