Unitech Energy Resources Inc.

Unitech Energy Resources Inc.

May 09, 2011 18:20 ET

Unitech Energy Proposes Crossfield Area Well and Files Annual Information Form

CALGARY, ALBERTA--(Marketwire - May 9, 2011) - Unitech Energy Resources Inc. (" Unitech" or the "Company") (TSX VENTURE:URX) is pleased to announce that it proposed the drilling and completion of a horizontal well into the Viking zone to its 65% working interest partner for its lands located in the Crossfield area (the "Crossfield Lands"), which proposal was accepted on April 28, 2011. The Company has concurrently entered into a farmout agreement with another industry partner to participate in the Company's 35% working interest in the Crossfield proposed well. Under the terms of such farmout agreement, the farmee will pay 100% of the Company's capital obligations to drill and complete the well, and in exchange will earn 60% of the Company's 35% working interest. Any future wells to be drilled on the applicable section of the Crossfield Lands will be split between the Company and the farmee equally.

In August 2008, the Company entered into a farm-in agreement for the Crossfield Lands to tie in an existing gas well located at 10-29-030-03W5. The pipeline tie-in project was completed in early April 2009 and the well commenced production on April 9, 2009. In return for paying 35% of the costs associated with re-connecting the suspended gas well, the Company earned a 35% working interest in the well, subject to a 12.5% lessor's royalty. Production from this well represents the majority of the Company's production.

The Company's 35% working interest in such well includes all rights from the base of the Cardium zone to the base of the Manville zone, including the petroleum and natural gas rights in the Viking zone. Industry activity has demonstrated the Viking zone to be a viable candidate for horizontal drilling/multi- stage completions, as evidenced by the two wells drilled in the section immediately south of the Crossfield Lands.

The Company also announces the filing of its annual information form for the year ended December 31, 2010 dated May 9, 2011. An electronic copy of the annual information form may be obtained on Unitech's SEDAR profile at www.sedar.com. To the extent investors do not have access to the internet, copies of the materials can be obtained on request without charge by contacting Unitech.

About Unitech

Unitech's business currently includes a wide range of oil and gas activities including oil and gas proprietary technologies, oil and gas exploration and oil and gas services, including oil and water disposal services. For additional details, please visit Unitech's website at www.unitechenergy.ca.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the timing and completion of the Company's proposed horizontal well on the Crossfield Lands and related information. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward- looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations and assumptions made by the Company which include, but are not limited to, the timing of the receipt of any required regulatory and third party approvals and the future operations of, and transactions completed by, Unitech. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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