BILLINGS, MT — (Marketwire) — 07/14/11 — UnionTown Energy Inc. (OTCBB: UTOG) (PINKSHEETS: UTOG) is pleased to report that it is completing the New Miami #42-20H well, the first of 17 wells planned for the New Miami property. Intermediate 7-inch casing was set on around the curve to 3,256– measured depth. Slotted 4.5″ production casing was run to a total measured depth of 5,300–. The well is now awaiting a service rig and swabbing and production flow testing will commence the week of July 18, 2011.
After testing is completed, UnionTown will decide whether an acid treatment is required to increase the production flow rates. Additionally, the company will determine the size of the pumps needed to accommodate the production rate.
Drilled between June 7 and June 19, 2011, the New Miami #42-20H 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 encountered.
The drill crew drilled roughly along dip for about 400 horizontal feet of pay in one of the secondary zones and 94 horizontal feet of pay in the other. The 400-foot secondary zone produced two additional secondary Madison Formation pay zones and encountered tar balls from its base (25 feet below the primary target) and dark brown free oil from the remainder of its zone (to 15 feet below the primary target).
Starting at a depth of 4,400 feet, which represents the top of the primary pay zone, and extending down to a depth of 5,275 feet, the drill crew encountered nearly continuous — and at times heavy — oil flows over the shaker.
“We are very encouraged with the results to date of the New Miami #42-20H well at our New Miami property,” said UnionTown–s President and CEO Darren Stevenson. “The geological summary suggests encouraging production potential from this well.”
The New Miami property comprises more than 1,480 acres in the Sweetgrass Arch area of northwest Montana.
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, out of the total of 17 potential wells. The company considers these two wells will be lower in exploration risk as they are offset from two previous vertical wells, which have determined the presence of a shallow oil accumulation in the area.
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 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 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.
Contact
Patrick Smyth
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