US Natural Gas Corp Closes on Acquisition of Twenty Five Oil Wells with Projected Two Year Revenue of $1.1 Million
ST. PETERSBURG, Fla., July 26, 2011 /PRNewswire/ -- US Natural Gas Corp (OTCQB: UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to announce that it has closed on the acquisition of the Pine Grove Project located in Edmonson County, Kentucky.
(Logo: http://photos.prnewswire.com/prnh/20110303/HS58643LOGO)
Included within the acquisition is twenty-five previously producing oil wells, two water injection wells, mineral rights leases covering 600 acres, a deed for 182 acres of additional mineral rights, 10 collection tanks varying in size from 100-210 barrels, eighteen pumpjacks, and all completion components. The wells are drilled to an average total depth ("TD") of 1400 ft. with the primary formation of production being the Devonian Clear Creek. The drillers log shows another potential production zone known as the Dutch Creek formation which the Company may elect to treat in the future.
At present, twelve of the twenty-five wells can be placed into immediate production. The remaining thirteen wells will be addressed and placed into production over the next two to three months. The Company anticipates that the work to place these wells into production will be limited to replacing tubing, motors, electrical, and minor above ground components.
The Company's projected production from the twenty five wells is on average 22 BOD (barrels of oil per day). At conservative pricing of $70/barrel for oil, the Company's two year revenue estimate is $1.1 million from this newly acquired oil field.
"We are excited to close this acquisition and move forward with placing the wells in production," stated Wayne Anderson, President of US Natural Gas Corp. "The addition of these twenty five producing wells gives us a total of 44 wells now in production in Kentucky. We will continue to entertain acquisitions and joint ventures to increase our well count and daily production."
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. 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 Annual Report on Form 10-K for the year ended December 31, 2010.
Contact:
US Natural Gas Corp
Shannon Bell, Executive Assistant
(727) 824-2800
[email protected]
SOURCE US Natural Gas Corp
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article