Sylios Corp. (fka UNGS)

[Timothy Smith]

Interesting news today.

US Natural Gas Corp Looks to Expand Its West Virginia Operations through Acquisition of Gas Company

Acquisition would add 40 Natural Gas Wells and 9000 Acres of Leases

Jul 11, 2012 11:06:00 AM
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ST. PETERSBURG, Fla., July 11, 2012 /PRNewswire/ -- US Natural Gas Corp (OTC Pink: UNGS), an energy exploration company with operations in the Appalachian Basin announced today that the Company has entered into the bidding process to acquire the operations of a natural gas production company located in Wayne County, West Virginia.

If successful, the acquisition would add 40 producing natural gas wells and 9000 acres of mineral rights leases to its current portfolio bringing the total to 162 natural gas wells and 21,000 acres of mineral rights under lease all within the same county. The 40 natural gas wells produce on average 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.

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 is currently in negotiations with two potential partners 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 Company will submit its bid on July 13, 2012. The winning bidder will be notified prior to month's end with the closing transaction to take place during the month of August. Terms of the proposed acquisition have not been disclosed.

"The proposed acquisition will complement our producing properties in West Virginia," said Wayne Anderson, President of US Natural Gas Corp. "To be afforded the opportunity to acquire an operation of this size within 20 minutes of our current operation is extremely beneficial. We look forward to submitting our bid later this week and will keep shareholders abreast of the outcome."