UnionTown Energy Concludes Terms of Definitive Agreement to Acquire the "New Miami" Oil and Gas Property in Northern Montana
As Part the Agreement, the Company Has Issued a Non-Refundable $300,000 Advance Toward the Purchase Price
BILLINGS, MT--(Marketwire - March 31, 2011) - UnionTown Energy Inc. (OTCBB: UTOG) today announced it has reached an agreement on material terms of a definitive agreement to acquire the "New Miami" oil and gas property and issued a non-refundable advance payment of $300,000 towards the purchase price.
The closing documents are in the process of being finalized, and the agreement is slated to be completed by the middle of April 2011.
As previously reported by the Company, the northern Montana property is situated in a prolific oil and gas district, with more than 300 million barrels of oil and 500 billion cubic feet of natural gas produced to date within a 50-mile radius. Just 4 miles from the property, a single producing oil field has yielded in excess of 30 million barrels of oil.
UnionTown Energy considers the New Miami to be a high-potential acquisition that could be brought to production quickly, at low cost and low risk. Two previously drilled wells have already determined the property sits atop a shallow oil accumulation. The Company has reviewed reports from the drilling, considered to be conservative, that estimate the property contains 2.4 million recoverable barrels of oil.
UnionTown believes the property has the potential to accommodate 17 shallow horizontal oil well locations.
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