US Natural Gas Corp Successful in Acquisition!!!
US Natural Gas Corp Successful in Acquisition Bid for Natural Gas Production Company
Oct 16, 2012
OTC Disclosure & News Service
St. Petersburg, FL -
US Natural Gas Corp Successful in Acquisition Bid for Natural Gas Production Company
Combined Companies Operating 162 Natural Gas Wells with 21,000 Acres under Lease
ST. PETERSBURG, Fla. October 16, 2012 -- US Natural Gas Corp (OTC Pink:UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to inform shareholders that the Company has successfully won the bidding process previously announced on July 11, 2012 for the acquisition of certain assets of the Wayne Gas Company located in Wayne County, West Virginia.
Through the asset acquisition, the Company will acquire 40 producing natural gas wells, 9000 gross acres of leases on mineral rights and the coal, oil and gas rights (mineral rights) encompassing approximately 7,400 gross acres all located in Wayne County, West Virginia. The 40 natural gas wells produce on average a combined 5000 MCF per month. Management projects this level of production to increase by 50 percent after each of the wells is addressed under a water maintenance plan.
Upon closing of the acquisition, the Company will operate 162 natural gas wells, maintain leases covering 21,000 acres of mineral rights, own via deed the coal, oil and gas rights (mineral rights) encompassing approximately 7,400 gross acres and own via deed 199 acres of surface all located in Wayne County, West Virginia. Terms of the transaction were not disclosed, but closing is scheduled to occur during the fourth quarter of 2012.
The Company will have two options for delivery from this newly acquired field. Current production is transported to a local utility company with hedging at prices well above the spot price for natural gas. In addition, a separate active transmission line crosses one segment of the leasehold base. The Company has been afforded the opportunity to tap into this line for an alternative transmission and delivery method. The Company will make a determination which delivery option it will elect to pursue in the coming weeks.
The Company is currently in negotiations with a potential partner to joint venture on the acquisition. The Company would retain the operations of the gas company, while the joining partner would retain the acquired mineral rights. The Company would simultaneously lease the acquired mineral rights from its partner. The addition of a partner in this transaction would afford the Company the immediate funding needed for anticipated capital expenditures and prevent the need for any future dilutive financing transactions.
"We are pleased to be afforded the opportunity to announce this acquisition to our shareholders," said Wayne Anderson, President of US Natural Gas Corp. "The addition of the wells, leases and mineral rights adds to our portfolio of producing properties in West Virginia and will immediately add to the Company’s revenue base.”
About US Natural Gas Corp
US Natural Gas Corp is an independent energy company principally engaged in the acquisition, exploration and development of mature long-lived oil and natural gas properties. The company's current operations are concentrated in the Appalachian Basin within the states of Kentucky and West Virginia with core assets consisting of 17,000 acres of mineral rights leases and interest in approximately 150 oil and gas wells. More information on US Natural Gas Corp can be found on the Company’s website at www.usnatgascorp.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Additional risks and uncertainties are set forth in the Company's Unaudited Annual Report for the year ended December 31, 2011, which can be found on the OTC Markets website, www.otcmarkets.com.
Contact:
US Natural Gas Corp
(727) 824-2800
info@usnatgascorp.com
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.
