UnionTown Energy Inc.(fka UTOG)

[cayman_west]

NEWS

Dear Shareholder,

UnionTown Energy Inc. and its management have made their best efforts to develop working capital for the operations and maintenance of its leases. Management has also been funding corporate expenses out-of-pocket and has not taken any wages nor received any options this calendar year. The capital markets and private equity have been unwilling to provide investment capital with the Company’s stock currently trading on the Grey Sheet Market.

Furthermore, an S.E.C. investigation into the company, focusing on the period prior to the suspension of our trading during the managment of Darren Stevenson, has recently been initiated.

The Company intends to fully co operate with the investigation and provide , through its corporate counsel, all the materials requested, and hopes that this issue will be fully resolved once and for all.

In light of these circumstances, which have resulted in a lack of capital, the Company has been unable to meet its ongoing property commitments. Management worked diligently to extend the terms, as we had done in the past, but the vendor would not continue with more extensions. Consequently the lease agreements for Teton and Darby have been canceled for non-payment.

The property at New Miami, while producing small amounts oil, needs substantial financial commitment to further develop the wells, which are not producing the amounts expected even after additional work. The operator is unwilling to fund further testing and work on either wells one or two without further cash investment. Further commitment to the vendor must also be made by the Company by April 2013 for the development of the next well or the remainder of the lease will be lost. Therefore, management believed it best to enter into a farm out agreement to move the financial obligations and development obligations to a third party.

As a result of the aforementioned, the letter of intent between NX Petroleum and the European Company was rescinded by the European Company. Furthermore, the agreement between NX Petroleum and Uniontown was rescinded, thereby reverting all capital (shares), remaining assets and debts to UnionTown Energy Inc.

As a result of the aforementioned facts, management, with direction provided by a majority shareholder resolution, has agreed to the following with the European Company:

a) Uniontown will receive an payment of $2,000,000 from the proceeds of the working interest of the existing wells at New Miami transferred to the European company on a 50/50 basis until paid, plus;

b) Uniontown will retain 5% of 8/8ths Net Royalty Interest on all existing wells and any future wells at New Miami until a total amount of $3,000,000 in Net Royalty Interest has been received by Uniontown.

c) Uniontown will retain an Adjusted Net Royalty Interest of 2% of 8/8ths Net Royalty Interest on all existing wells and any future wells at New Miami after a total amount of $3,000,000 in Net Royalty Interest has been received by Uniontown.

Assuming the existing wells become consistent and can produce economically, the European Company has indicted that they will secure the commitments to further develop the existing well and develop all additional wells .

NB: “Net Revenue Interests” means, with respect to a given oil and gas lease, the interest of Seller in production of oil and/or gas from or allocable to such lease, net of royalties and other lease burdens as calculated on an 8/8ths basis. With respect to the Net Revenue Interest that Uniontown is keeping under this agreement on all existing wells and any future wells, it will be 5% of 8/8ths. (this means that the outstanding debts to the operator and a lender must be paid first)

“Adjusted Net Revenue Interest” means a Net Revenue Interest of 2% of 8/8ths that Uniontown is keeping after a total amount of royalty of $3,000,000 has been paid to Uniontown out of production.

Moving forward
UnionTown Energy owns the Musselshell property, and this will be our cornerstone investment moving forward. The structure may hold 16 or more drill sites with 2,000 foot horizontal legs. Based upon economic projections provided by our consultant and a third party analysis, the wells could conservatively produce $18,000,000 each.

If the wells begin to produce adequately, Uniontown can expect to receive cash flows and a working interest in the existing New Miami wells, as well as any future wells on the property. Please also note, as per our 10Q filed in August 2011, the Mussellshell property had a booked value of over $26 million.

The main question asked by shareholders concerns the value of the stock andliquidity. Over the holiday period, management will looking at a number of options that may address these concerns, including listing on a new exchange and further investment into new properties. We are doing our best in these financial conditions and a detailed plan shall be laid out in January 2013.

Sincerely,

UnionTown Energy Inc.




Safe Harbor
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 its properties may 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 Report on Form 10Q/A filed on September 23, 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. The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Additional information may be found at the following web site: http://tinyurl.com/cjrx9t6 <http://cts.vresp.com/c/?UniontownEnergyInc./8eff6d53e0/2bdf4fe600/f6cea06f7d

[cayman_west]

The CEO who got UTOG suspended is now hiding in Morocco. "Darren Abdul Rahim Stevenson" - See http://www.facebook.com/darrenabdulrahim.stevenson

This company was great until he came along and messed things up. I feel sorry for Mr. Smyth who inherited this crap. Plus the SEC has finally sent along a subpoena for information on what happened during Mr. Stevenson's tenure.

[TMcNasty]

Nah that wasn't me. Tempting, but that old nasty chart kept me away.

[Stocked-Up]

it showed on L2 however, figured you might be the 56k block right behind it just for what if???Please post if you come across anything meaningful...

[TMcNasty]

Didn't show in thinkowrswim charts either. I saw it on an EquityFeed scan I have running. Man too bad it wasn't on something fresh instead of this thing.

[TMcNasty]

Thanks. I'm sure you'll wind up being right.

[Stocked-Up]

volume not showing up on Fidelity or Ihub?

[TraderTrisha]

Cross trade book cooking for someone's year end CGT computation - nothing more imho

UTOG

[Jbob]

Oh man, your right about that. Wonder whats up? Do they even promo grey sheet stocks?

[TMcNasty]

Be happier if it wasn't an old promo. Also...

http://www.otcmarkets.com/stock/UTOG/

Grey sheets. Yuck.

[Jbob]

Impressive...thats one big buy

On watch for sure!!

[TMcNasty]

There was just a 64,527,560 block trade at .021 at 15:30:20.
Wow. Former pumper.

[kipper76]

Perhaps in the new year [2013] we will hear something. Keep our fingers cross.....

[Starship099]

There has been no news now for three months. And now surprisingly the stock has fallen to one cent a share for a few minutes. This is unbelievable. I never thought such a thing would occur. We need to get some news about their oil drilling for new wells and ongoing production. Also what has happened with the company that they own 48% of and their plans to get listed. They gave up nearly all of their land holdings for this take over deal. They should have 48% of the income from the partially merged company.

[flaflyersfan]

ThinkorDie, to salvage $200 and write off the loss?;

I hope you can find a buyer for them.

Good luck.

[manfromjax]

Well, you are not alone on losing money on this POS.

You should probably sell next year to capture your cap loss to offset any rise in Cap Gains tax due to Obama, that is if you have any Cap Gains next year???

[ThinkorDie]

This company is worth about as much as a wooden nickel.

I've lost over $10,000 on UTOG. Bad bet, a very very bad bet. Chalked up to lessons learned. Still holding on though, why bother selling when I've already lost 98%.

[elkonig]

This is not a surprise! Anything to do with Brian Kennedy and Cubo Energy is toxic.

[snowcat9]

Patrick no longer answering e-mails. Is he gone? This sure has been a disappointment.

[justlost]

Up 145%? Hold on to your seats boys and girls I think we have a gusher!!!!

[bruce4653]

UTOG has a 10% working interest in the New Miami property. Yhe definition of working interest FYI:

A percentage of ownership in an oil and gas lease granting its owner the right to explore, drill and produce oil and gas from a tract of property. Working interest owners are obligated to pay a corresponding percentage of the cost of leasing, drilling, producing and operating a well or unit. After royalties are paid, the working interest also entitles its owner to share in production revenues with other working interest owners, based on the percentage of working interest owned.

This appears how UTOG will generate revenue for administrative operations for the near term.

[justlost]

I agree, I'm holding on to what I have but wouldnt buy more with a wooden nickle.

[flaflyersfan]

Starship099, there is no reason to try to make back your money on the same stock you lost it on;

Averaging down on a stock is like seeing a nickle sticking out of something floating in the toilet so you throw $1 in to retrieve $1.05.

UTOG does not trade for weeks at a time. Buy a stock that there is interest in. Penny stocks are popularity contests and have nothing to do with business.

Good luck.

[Starship099]

I bought first 5,000 shares and a bit later another 4,000 shares when the stock was at $2.60 on a recommendation that the stock was going to go to $8. The crash came after that. My 2,500 shares of a gold stock is slowly creeping up. I am selling it as it goes up to pay off a remaining $11,380 of credit debt. I hopefully will have an extra $8,000 to kick around. I hope to increase my holdings in this stock to 100,000 shares. Then I can really make money if the stock takes off. Ii am at a $11,600
loss postion now.

[After Shock]

Yes whitedog3 the whole north central united states is a hot bed for oil. to go horizontal of course takes different equipment but the drilling rig is the same rig. my main concern with this is that they had to get haliburton involved. haliburton is absolutely the best at figuring out problems in the oil industry but, having to get them in there tells me that what they say about this is a new type of oil removal being exploratory means that figuring this out may take some time. that being said, when they do figure it out and they will, UTOG will explode. that is why i have been hanging onto this stock for 1 1/2 years. GLTA

[whitedog3]

After shock,having worked in the field how hard is it for them to switch to horizontal.They mentioned plans to do that.The chances of hitting oil are much better.They also save money because they only drill 1 well.Also,all we here about North Dakota and Baken.UTOG is in the heart of it all.Is this area as hot as they say?

[whitedog3]

That was funny,you just jump started my attitude.

[justlost]

OMG it moved!! Quick, somebody poke it with a stick and see if it moves again!!!

[After Shock]

I work in the oil fields and there are a lot of variables involved in how much a well produces per day. Their range of 25 to 50 sounds likely but, of course we would like to hear 150 to 200 per day.

[elkonig]

I see Patrick Smyth of Ocean Eclipse and UTOG is now a consultant/advisor for Nitro Petroleum. Uniontown Drilling is also a newly registered(March/April) company in Nevada for some reason.

[elkonig]

The website has a new October updated letter. Production for the new miami well is stated at 25 to 50 barrels of oil per day. You would think they would know exactly what the average daily production was wouldnt you.

[financialwin]

Very interesting, the last few days,

[elkonig]

So, how much production has the New Miama well put through since the initial announcement July 16th.

[manfromjax]

It would be nice to wake up one day and see Green in your account!
But, I am not holding my breath.

[kipper76]

Tks for the update. Been waiting a long time. Time will tell if we ever see our money from this stock...

[manfromjax]

New Shareholder letter

http://www.uniontownenergy.com/documents/newsletter.html

[Starship099]

What would be really important is the quarterly report. We need to see what kind of income they have
earned so far. They told us that they would comply with the Security and Exchange rules. This would really give value to the stock. We would be no longer trading in the penny market and we could recover some of our lost money.

[lucky, mydog]

Only buying today

not true. this is the grey market which means matched trades. since there is no bid or ask, all transactions show as buys.

[financialwin]

Only buying today...that could be good. Why would people buy if this was not real....hopefully not just dreamers.

[bluefin1]

we need another update from UTOG. More info on current oil production flow rates and shipping quantities!!!

[bruce4653]

My question is: WHY WOULD ANYONE BE SELLING THIS STOCK? THERE IS NO DOWNSIDE AT THESE PRICES AND THE POTENTIAL UPSIDE IS UNKNOWN.

[flaflyersfan]

Historical Prices for UTOG


Prices
Date Open High Low Close Volume Adj Close*
Aug 31, 2012 0.04 0.05 0.03 0.03 53,400 0.03
Aug 30, 2012 0.04 0.04 0.03 0.03 11,300 0.03
Aug 29, 2012 0.03 0.04 0.03 0.04 11,000 0.04
Aug 28, 2012 0.04 0.06 0.03 0.05 49,200 0.05
Aug 27, 2012 0.05 0.06 0.04 0.04 54,800 0.04
Aug 24, 2012 0.04 0.06 0.03 0.03 19,500 0.03
Aug 23, 2012 0.04 0.05 0.04 0.04 29,800 0.04
Aug 22, 2012 0.04 0.04 0.03 0.03 29,000 0.03
Aug 21, 2012 0.05 0.05 0.03 0.05 46,500 0.05
Aug 20, 2012 0.05 0.05 0.04 0.05 18,600 0.05
Aug 17, 2012 0.05 0.06 0.04 0.04 14,700 0.04
Aug 16, 2012 0.05 0.06 0.04 0.04 28,300 0.04
Aug 15, 2012 0.04 0.07 0.04 0.07 521,700 0.07
Aug 14, 2012 0.04 0.05 0.04 0.04 158,000 0.04
Aug 13, 2012 0.05 0.06 0.04 0.06 40,200 0.06
Aug 10, 2012 0.04 0.05 0.04 0.04 71,000 0.04
Aug 9, 2012 0.05 0.05 0.04 0.04 17,500 0.04
Aug 8, 2012 0.05 0.05 0.04 0.04 182,000 0.04
Aug 7, 2012 0.04 0.04 0.04 0.04 10,000 0.04
Aug 6, 2012 0.05 0.07 0.04 0.05 33,500 0.05
Aug 3, 2012 0.05 0.06 0.04 0.04 49,100 0.04
Aug 2, 2012 0.06 0.06 0.04 0.04 11,000 0.04
Aug 1, 2012 0.07 0.08 0.04 0.05 58,300 0.05
Jul 31, 2012 0.06 0.07 0.04 0.07 34,500 0.07
Jul 30, 2012 0.07 0.07 0.04 0.07 50,000 0.07
Jul 27, 2012 0.04 0.05 0.04 0.05 10,600 0.05
Jul 26, 2012 0.05 0.05 0.04 0.05 24,000 0.05
Jul 25, 2012 0.05 0.05 0.04 0.05 47,900 0.05
Jul 24, 2012 0.05 0.05 0.04 0.04 20,500 0.04
Jul 23, 2012 0.05 0.05 0.04 0.04 20,500 0.04
Jul 20, 2012 0.04 0.07 0.04 0.05 24,500 0.05
Jul 19, 2012 0.04 0.07 0.04 0.07 34,000 0.07
Jul 18, 2012 0.06 0.07 0.05 0.07 31,100 0.07
Jul 17, 2012 0.07 0.07 0.07 0.07 51,800 0.07
Jul 16, 2012 0.07 0.07 0.04 0.07 18,300 0.07
Jul 13, 2012 0.05 0.08 0.05 0.08 12,300 0.08
Jul 12, 2012 0.05 0.05 0.05 0.05 100 0.05
Jul 11, 2012 0.05 0.05 0.05 0.05 10,200 0.05
Jul 10, 2012 0.07 0.08 0.05 0.07 53,100 0.07
Jul 9, 2012 0.07 0.07 0.05 0.07 117,100 0.07
Jul 6, 2012 0.05 0.05 0.04 0.05 32,600 0.05
Jul 5, 2012 0.05 0.05 0.04 0.04 2,100 0.04
Jul 3, 2012 0.04 0.04 0.04 0.04 0 0.04
Jul 2, 2012 0.04 0.06 0.04 0.04 9,300 0.04
Jun 29, 2012 0.04 0.04 0.04 0.04 10,800 0.04
Jun 28, 2012 0.05 0.05 0.04 0.05 27,700 0.05
Jun 27, 2012 0.06 0.06 0.04 0.04 7,200 0.04
Jun 26, 2012 0.05 0.05 0.04 0.05 3,000 0.05
Jun 25, 2012 0.07 0.07 0.05 0.05 4,500 0.05
Jun 22, 2012 0.05 0.05 0.04 0.04 2,000 0.04
Jun 21, 2012 0.04 0.04 0.04 0.04 10,000 0.04
Jun 20, 2012 0.05 0.07 0.05 0.05 16,900 0.05
Jun 19, 2012 0.05 0.05 0.05 0.05 1,200 0.05
Jun 18, 2012 0.05 0.08 0.04 0.08 15,500 0.08
Jun 15, 2012 0.07 0.07 0.05 0.05 5,100 0.05
Jun 14, 2012 0.07 0.07 0.06 0.06 17,400 0.06
Jun 13, 2012 0.08 0.10 0.07 0.08 35,100 0.08
Jun 12, 2012 0.05 0.08 0.04 0.07 6,300 0.07
Jun 11, 2012 0.05 0.07 0.04 0.05 2,900 0.05
Jun 8, 2012 0.04 0.04 0.04 0.04 0 0.04
Jun 7, 2012 0.04 0.04 0.04 0.04 28,500 0.04
Jun 6, 2012 0.04 0.04 0.04 0.04 24,700 0.04
Jun 5, 2012 0.05 0.05 0.05 0.05 0 0.05
Jun 4, 2012 0.05 0.05 0.05 0.05 500 0.05
Jun 1, 2012 0.05 0.05 0.05 0.05 5,200 0.05
May 31, 2012 0.06 0.06 0.05 0.06 3,100 0.06


Good luck

[kipper76]

My question-- why would anybody be buying this stock????

[me_assassin]

I know everyone likes to poke fun, but really, who is doing all the accumulating of shares? Any ideas? 10's of thousands everyday and over 500K changing hands on one day just a couple weeks ago.

No matter how you look at it someone(s) are spending alot of money acquiring shares.

Why?

Max

[flyboy61]

All I see are buy orders. The stock rises for a very short time and then hits the tank, again. UTOG stock must be so diluted that any type of stock purchase is not going to move it until huge orders take up the slack.

[flaflyersfan]

bruce6453, maybe it was someone selling the $750 worth of UTOG stock they bought at $2.50 per share last July 31st.

Good luck.

[dirtdog]

An instder who wants to show interest and paint the stock higher!Maybe a paid employee who's income comes from this company!Could it be the CEO is accumalating a position;watch out tommarrow,a big move expected on a $100 trade! LOL,this stock hasn't been able to list anywhere,why?A conspiricy against an honest,well manage,profitable,oil rich property owning company,or a POS?They say an Elvis lives like coverup.New Miami has not been profitable.Why sell off 90% of your best property?Cause it is a bust so far!Or you are STUPID.

[bruce4653]

I see a trade for 300 shares at 6 cents/share.
Who buys $18 worth of stock?

[alabama96]

This deal with EGPI (EFIR) has been on hold since CUBO was delisted because they didn't meet the Frankfurt Exchanges new listing requirements. Don't know what the status of CUBO really is, but I EGPI is allegedly working to close the deal still. Maybe CUBO is trying to do a R/M with UTOG.

[bruce4653]

It is 10% of NET income. Take the revenue from 30 bbls/day for however many days you select and subtract the expenses for that same number of days and that will give you NET income for well #1. UTOG receives 10% of that amount. Do the same calculation for each new well.
The value of the UTOG stock will not be determined by revenue generated from the New Miami wells. That revenue however, will insure continuity of operations and provide cash for new leases and drilling on them. THAT will add value to the stock along with the 48% ownership in NXP.