US Natural Gas Corp to Increase Oil Production Through Acquisition
Company to Recognize Revenue during Current Quarter
ST. PETERSBURG, Fla., Jan. 25, 2012 /PRNewswire/ -- US Natural Gas Corp (OTCQB: UNGS), an energy exploration company with operations in the Appalachian Basin, is pleased to announce that it has reached terms to acquire two producing oil wells adjacent to the Company's current leasehold base in Edmonson County, KY.
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The GV No. 1 was drilled and completed in September 1987 to a total depth of 1257' with production occurring from the Devonian Clear Creek formation. Initial production results were 15 Barrels of oil per day ("BOD") naturally. The well was not treated prior to being placed into production. Current production is 1.5 BOD.
The GV No. 7 was drilled and completed in October 1995 to a total depth of 1280' with production occurring from the Devonian Clear Creek formation. Initial Production results were 10 BOD naturally. After treatment with 2500 gallons of an 18% solution of Hydrochloric acid, the well produced 45 BOD. Current production is 2.5 BOD.
The Completion Reports for both the GV No. 1 and No. 7 wells detail an odor of oil in the Dutch Creek formation which is consistent with the Company's wells in its Pine Grove project. At a future date, the Company may elect to treat this formation to increase productivity. The No. 1 well is a prime candidate for a 2 stage treatment of both the Dutch Creek and Devonian Clear Creek formations.
Management anticipates that closing will occur prior to the end of February and revenue recognition will begin immediately thereafter.
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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