US Natural Gas Corp Updates Shareholders on Production Activity and Addresses Valuation

ST. PETERSBURG, Fla., Jan. 24, 2012 /PRNewswire/ -- US Natural Gas Corp (OTCQB: UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to update shareholders on the Company's production efforts for both the Kentucky and West Virginia subsidiaries and to address the current market valuation versus book value.

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The Company's operating subsidiary in the state of Kentucky, US Natural Gas Corp KY, continues to make strides in placing all the wells acquired in the Pine Grove asset acquisition into production. Last week, the Company announced plans to complete the installation of a new flow line for the movement of water to a secondary injection well. This accomplishment will allow the Company to place 18 of the 25 wells into production. The Company will pull rods and tubing on the remaining seven wells to determine which in-ground components need replacing. Upon completion of the work on the last 7 wells, the Company will have 49 producing oil wells within six counties in KY. The next stage for the Pine Grove project will be to perform a one or two stage frac (HCL or Foam-Acid) on select wells to increase production.

The Company's operating subsidiary in the state of West Virginia, US Natural Gas Corp WV, completed several projects on the Company's gathering system during 2011 aimed at increasing productivity. In addition, fourteen wells from the Wilon Resources, Inc. acquisition were reworked, tied into the gathering system and placed into production. To date, 72 of the 122 wells acquired have been addressed and placed into production.

As the disparity in pricing between oil and natural gas remains at historic levels, management will continue to curtail spending on its natural gas operations and seek further opportunities to expand its oil producing properties. Management has identified several potential acquisitions adjacent to current operating leaseholds and anticipates that announcements will be forthcoming shortly.

The recent decline in the Company's stock price has brought with it inquiries from shareholders. The Company advises that its policy is not to comment on unusual market activity or rumors. The Company further advises that it continues to adhere to its longstanding policy to make prompt public announcements of material information concerning its business, operations or prospects. In light of this disclaimer, management can underscore that with a market capitalization of approximately $250,000, the Company's current valuation is an approximately 90% discount to its book value of $3,166,456.

"I am pleased to report on the progress we have seen in both states and highlight the shift in capital expenditures to our oil producing properties," stated Wayne Anderson, President of US Natural Gas Corp. "Management is addressing several opportunities in an effort to bring the Company's market capitalization more in line with our book value. We anticipate our actions will allow shareholders to benefit from some of the inherit value unheralded within our asset base."

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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