UnionTown Energy Inc.(fka UTOG)

[bruce4653]

Additional info from UTOG

We are excited by the changes and the prospect for increasing our net value through our ownership in NX Petroleum, which is to be acquired by a European listed company. (NX Petroleum now owns the former UTOG properties in Montana and Wyoming.)



UnionTown’s investment means that it currently owns 48% of the shares of NX Petroleum and a 10% working interest in the New Miami Property on all wells, current and future. Once NX Petroleum is acquired by the European listed company, UnionTown will own 48% of the new European listed company.



Simply put, current shareholders of UnionTown Energy Inc. retain their shares in UnionTown Energy with the asset base being the ownership in the new company and a 10% working interest.



For the USA-based company shareholders the valuation of the listed share comes from the value of the new company. So, in theory and as an example, if the new European company has a market capitalization of $300 million Euro, then the value to UnionTown is 48% of that value or about $62 million dollars or 0.85 cents per share.



In addition, UnionTown is retaining a working interest in the New Miami prospect, and expects that it will derive a solid revenue stream moving forward possibly increasing the value of the shares. And we would expect that as more of the assets are drilled and brought into production, that the overall value of both companies should rise based on current market conditions.



This restructuring and financing was the best choice for our shareholders given that FINRA would not permit market maker(s) to quote our stock on the OTCBB after our suspension from the markets last year. To this date, the Company has not received a formal reply to our request for more information from the S.E.C.



Our outside financing has ensured the long-term viability of the assets, and has created the potential now for building up production on a greater scale. The fact remains that the Company was unable to develop outside investment under the old structure, and on the grey markets. We studied many options, and this was the best one.



Again, this move creates stability for UnionTown Energy Inc. shareholders and the potential for long-term investment returns attractive.



Please note, the Company does now intend to relist UnionTown Energy Inc. on the Canadian National Stock Exchange http://www.cnsx.ca/ or a similar exchange with a long term goal of listing on the NYSE Euronext (NYX) or a similar USA Exchange. We want to see a proper market for your shareholdings. Efforts on this front will begin immediately with management working with its accountants and auditors to become fully reporting and compliant again.



The addition to the UnionTown Management Team bring in strong corporate finance from Mr. Karlsson while ensuring that continuity with the promotion of Mr. Smyth who also has a strong financial background. It’s their goal to focus on seed through early stage growth equity with the goal of creating a return for investors through potential dividends and liquidity in the public market. UnionTown has the potential to build through future acquisitions and partnerships, and will be exploring all options.



Our company sees significant potential in Montana's and Wyoming’s under-developed shale fields, and it’s clear that the oil and gas industry will play a pivotal role in supplying the world with energy far into the future making investment in UnionTown Energy Inc. very attractive.





Patrick Smyth

Chief Executive Officer

UnionTown Energy Inc.

http://www.uniontownenergy.com

Phone: [phone]



Facebook: http://www.facebook.com/uniontownenergy.utog

Twitter: @UnionTownEnergy



A proud member of the Montana Petroleum Association





This E-mail may contain forward-looking statements within the meaning and the provisions of the Private Securities Litigation Reform Act of 1995 and is subject to safe harbor created by these sections. This information is confidential information covered by the Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and is legally privileged. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. The contents herein are not intended to be and are not an advertisement for any securities of the company.



P Before printing this e-mail please consider if it is necessary to do so: the environment concerns us all.


Delete ReplyReply ForwardSpamMovePrint Actions NextPrevious