BILLINGS, MT — (Marketwire) — 08/03/11 — UnionTown Energy Inc. (OTCBB: UTOG) (PINKSHEETS: UTOG) is pleased to report promising initial oil cut results from its New Miami #42-20H well completion program.
During the ongoing swabbing procedures, the well operator has reported oil cuts starting at 2.5% on July 23, 2011, steadily increasing to an average up to 10% based on an average swabbing rate of 38 barrels per hour on July 28, 2011.
One of UnionTown–s contracted geologists visited nearby producing wells to compare the New Miami #42-20H well–s water resistivity data with theirs. He determined that the fluids being extracted from the New Miami #42-20H well are still mostly drilling fluids. It is his interpretation that water from the oil formation has not yet appeared in the swabs and that it will probably be a few more days before fluids produced from the actual oil-producing pay zones begins to appear.
The Company is encouraged by these findings and considers the steady increase in the oil cut rates to be a promising sign. It also considers it to be a positive development that the well has produced a 10% oil cut rate even before fluids from the oil formation–s pay zones have been encountered.
Once the swabbing procedures are completed, production flow rates will be determined and UnionTown will decide whether an acid treatment is required to further increase the production flow rate. The Company will then determine the size of the pumps needed to accommodate the production rate.
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,” “encouraged,” “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.
Patrick Smyth
Vice President of Finance
(702) 530-3241