BILLINGS, MT — (Marketwire) — 07/25/11 — UnionTown Energy Inc. (OTCBB: UTOG) (PINKSHEETS: UTOG) is pleased to announce it intends to drill 2 additional exploration wells on its Teton River property to further prove up, and potentially extend, the estimated ultimate recoverable (EUR) oil reserve model.
This decision follows the analysis of drill results from the first two wells UnionTown drilled on Teton River earlier this summer, Teton River #1A-10 and Teton River #2A-10, as well as a third well, Teton River #3-10, that previously existed on the property and was at one time a producing well.
Both of UnionTown–s recently drilled wells displayed very good heavy oil shows in several different sections. However, the Operator–s geologists believe that additional exploration could extend the estimated reservoir model determined by the prior drilling and provide a better understanding of the potential production locations and the size of the pay zones.
Initially, the operational team, working with the site geologists, had planned to advance directly towards implementation of a 5-spot pilot production model. But based on the drill results analysis, they now believe it would be more prudent to further prove up and define the reservoir. The two new exploration wells will be located straight east from the previously producing Teton River #3-10.
UnionTown is currently having its Teton River reserve model reviewed and expects to be able to report the EUR in the near future.
“After the positive heavy oil shows from our first Teton River well (Teton River # 1-10), the technical team added a coring program in the second well (Teton #2-10) to gather more information about the reservoir,” said UnionTown–s President and CEO Darren Stevenson. “The team–s examination of the core chips contributed to our decision to modify our strategy and thus plan the drilling of 2 additional exploration wells deeper into the sand with the goal of determining the location of larger pay zones that will hopefully result in producing oil wells with greater yields.”
After the 2 new exploration wells are completed and the reservoir outline has been better defined, UnionTown intends to redesign its 5-spot production location. Additionally, a steam generator is being obtained to support the commencement of oil flow testing on the newly drilled wells, starting with the Teton #1a-10.
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 .
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 the Teton River property, future exploration activities, results of exploration activities on this property, potential production from the property or the securing of a steam generator for the property, 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 8-K filed on April 5, 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.
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Patrick Smyth
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