SOURCE: UnionTown Energy Inc.

UnionTown Energy Inc.

May 02, 2011 06:30 ET

UnionTown Energy (UTOG) Announces Deployment of Drill Rig and Equipment to New Miami Property

FX Drilling Company and Weatherford International to Drill First of 17 Planned Horizontal Wells

BILLINGS, MT--(Marketwire - May 2, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) is pleased to announce that the operator of the New Miami Property, Sands Oil Company, has concluded negotiations with FX Drilling Company Inc., a 100% owned subsidiary of FX Energy Inc.

FX Drilling Company will deploy the drill rig this week to begin operations at the New Miami. The drilling program for the 5,277 feet primary drill target is scheduled to start between May 11-15, 2011.

In addition, Sands Oil confirmed today that Weatherford International, a highly experienced, world-class oil and gas services company, will execute the horizontal and directional drilling component of the program.

The well to be drilled is named the New Miami #42-20H. UnionTown expects approximately 4 days of vertical drilling followed by the horizontal, directional drill program.

Under the terms of the contract, UnionTown has already placed US$800,000 into the operations account to fund the drilling program.

As previously announced, this is the first of 17 horizontal wells planned for its New Miami property. UnionTown considers this first well to have a strong probability of success as the identified drilling target is adjacent to 3 additional vertical well completions that have been drilled at New Miami in which oil and gas have been tested and/or produced from the Sun River Dolomite (Madison).

The company has reviewed reports from recent drilling activity that estimate the 1,480-acre property to contain an estimated 2.4 million recoverable barrels of oil.

The New Miami Prospect is located in the Madison Formation in an area known as the Sweetgrass Arch. The property is situated within a prolific oil and gas region, with more than 300 million barrels of oil and 500 billion cubic feet of natural gas produced to date within a 50-mile radius. Within 4 miles from the property, a single producing oil field has yielded in excess of 30 million barrels of oil.

"We are very excited to be working with FX and their service partner, Weatherford International Ltd., which are world-class, premier oil and gas service companies," said UnionTown President and CEO Darren Stevenson. "Through our recent acquisitions, we have assembled a high potential oil and gas land package with near term, drillable targets that are estimated to have recoverable reserves in excess of 132.8 million barrels of oil equivalent. In addition, we will benefit from the operator and service partner's extensive experience in drilling operations and thus are making progress towards early production."

To learn more about the New Miami Property, please visit our website at www.UnionTownEnergy.com.

If you would like to be added to UnionTown's newsletter and news-release updates, please sign up at our website at http://www.uniontownenergy.com/investors/email-alerts/.

About FX Energy Inc.
FX Energy, Inc. is an independent oil and gas exploration and production company with principal production, reserves, and exploration activities in Poland and oil production and oilfield service activities in the United States. As of December 31, 2009, the Company held oil and gas exploration rights in Poland in nine separately designated project areas consisting of approximately 4.7 million gross acres. The Company owns a 100% working interest in approximately 3.8 million gross acres. In the United States, the Company produces oil in Montana and Nevada. In Montana, the Company performs, through its drilling subsidiary, FX Drilling Company, Inc., a variety of third-party contract oilfield services, including drilling, workovers, location work, cementing and acidizing. For more information about the company, please visit www.fxenergy.com.

About Weatherford International Ltd.
Weatherford is a multinational oilfield service company established in the United States more than 60 years ago. It is one of the largest global providers of innovative mechanical solutions, technologies and services for the drilling and production sectors of the oil and gas industry. Its advanced products and services span the drilling, evaluation, completion, production and intervention cycles of oil and natural gas wells. From a strategic standpoint, Weatherford has two key objectives: efficiency and productivity. Weatherford strives for efficiency, both in terms of delivering results for its clients as well as leveraging its worldwide infrastructure. The ultimate goal in both cases is to help reduce costs and increase well productivity. Weatherford employs more than 55,000 people worldwide, operates in over 100 countries and has 900 service bases and 16 technology development and training facilities. For more information about the company, please visit www.weatherford.com.

About UnionTown Energy
UnionTown Energy Inc. is focused on the acquisition, exploration, development and production of oil and natural gas properties. Our strategy is to build a portfolio of properties in known and producing oil and gas fields throughout North America. We recently completed acquisitions of the Musselshell Property, New Miami Property and Darby Block Property, and we're now moving rapidly to bring the first wells to production. We're also in the advanced stages of acquisition of other oil and gas properties, including the Teton River, and continue to develop a pipeline of additional potential acquisitions to add to our 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, the potential reserves, production and ability to establish wells on the Musselshell, New Miami Prospect, Darby Block Property, and the Teton River, 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

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    Patrick Smyth
    UnionTown Energy Inc.
    Phone: (702) 530-3241
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