US Natural Gas Corp Completes Installation of Natural Gas Powered Compressor
USNG WV Continues to Place Previously Acquired Wells into Production
ST. PETERSBURG, Fla., Sept. 7, 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 completed the installation of the newly leased natural gas powered compressor at its natural gas development project in Wayne County, West Virginia.
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The compressor contains a Gardner Denver screw and is powered by a 250 horse power natural gas powered Caterpillar engine. The unit has the capacity to compress up to 600,000 cubic feet of natural gas at a discharge pressure of 225 psig per day. An adjacent site has been prepared and plumbed in for the addition of a secondary compressor as the daily production increases.
The Company's previously acquired Knox Western compressor was disassembled and will either be relocated to the newly initiated Kentucky natural gas development project or traded for several smaller compressors. The Company's feasibility study determined that a natural gas powered compressor was a more cost effective means as compared to an electric powered compressor with natural gas prices staying at or below $5.00/mcf.
"Now that the installation of the natural gas powered compressor is complete and production has resumed, our field employees can concentrate on increasing the daily production," stated Wayne Anderson, President of US Natural Gas Corp. "We anticipate that we should be able to place three to five additional wells into production in the coming weeks. Our goal remains the same in addressing each of the acquired wells and placing those capable of producing commercially viable natural gas back into production."
Update on West Virginia Asset Sale
As noted in the Company's 10Q which was filed with the Securities and Exchange Commission on August 22, 2011, the Buyer of the Company's West Virginia assets requested a thirty day extension past the July 29, 2011 closing date. As of today, the Company has neither agreed to the extension nor to close upon the original terms. As such, the Company will continue with its plan of placing the wells acquired in the Wilon Resources acquisition back into production. Currently, the Company has placed 61 of these wells into 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
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