US Natural Gas Corp Initiates Natural Gas Development Project in Kentucky With Acquisition of Two Producing Wells

ST. PETERSBURG, Fla., July 27, 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 acquired the first two wells of its new natural gas development project in Whitley County, Kentucky.

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The M. Harmon No. 1 well was drilled and completed in 1991 to a total depth of 1758 ft. The well's producing formation is the Devonian Shale at the interval of 1654-1674', with initial production recorded at 100 mcf/day. The well currently maintains a shut-in pressure of 160 psi.

The H. White No. 1 well was drilled and completed in 1991 to a total depth of 1303 ft. The well's producing formation is the Big Lime at the interval of 1230-1248, with initial production recorded at 120 mcf/day.

The Company has targeted a total of 8 wells in and around the two recently acquired wells and leases. All eight of the wells were in production under the same previous operator and are tied into a central gathering system. The Company has reached an agreement with NGAS Hunter, a subsidiary of Magnum Hunter, for the transmission of the Company's produced natural gas to its sales point.

The Company's projected daily combined production from the eight wells is on average 150 mcf/day. At current pricing for natural gas of $4.50/mcf, the Company's conservative two year revenue estimate is $500,000 from this new natural gas development project.

"We are excited to move forward with this natural gas project," stated Wayne Anderson, President of US Natural Gas Corp. "The addition of these initial two wells will allow us to rather quickly generate revenue while we continue to negotiate for the acquisition of the remaining six wells."

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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