US Natural Gas Corp Resumes Delivery of Natural Gas Production

ST. PETERSBURG, Fla., May 16, 2011 /PRNewswire/ -- US Natural Gas Corp (OTCQB: UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to announce that the Company recently resumed delivery of its natural gas production in Wayne County, West Virginia after the successful installation of its compressor.

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As previously announced, the Company's WV subsidiary took delivery of a Knox Western compressor to replace the original compressor installed on the Company's West Virginia natural gas development project. The newly acquired TP 400 2 stage 4 throw compressor is skid mounted and powered by a 250 hp Reliance engine. Auxiliary equipment includes a 195-500 psig cooler, Murphy LCDT Selectronic Tattletale Instrument panel, Worcester double acting pneumatic actuator, and an auto-transformer. The compressor was refurbished in late 2010 and the specifications for delivery will allow the Company to deliver up to 1.2 million cubic feet of natural gas on a daily basis.

The Company has placed ten of its sixty-one producing wells back into production. Over the course of the next week, the Company will place the remaining wells into production. The Company will then resume Phase II development of its West Virginia natural gas development project by addressing the remaining wells acquired from Wilon Resources, Inc. The Company anticipates that during the remainder of 2011, it will have the opportunity to place those wells into production which are capable of producing commercially viable natural gas. In addition, the Company has submitted six preliminary new well sites to a third party for mapping, surveying and permitting.

"We are excited to have completed the installation of the newly acquired compressor and to resume delivery of gas to Columbia Gas Transmission," stated Wayne Anderson, President of US Natural Gas Corp. "Our new compressor will open doors for the WV subsidiary in that it allows us an opportunity to generate revenue in a pass through capacity from adjacent producers. Not only can we increase the delivery from our leasehold base, but we can also grant producers in and around us access to our tap through our gathering system and compressor station."

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 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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