BILLINGS, MT--(Marketwire -05/07/12)- UnionTown Energy Inc. (UTOG.PK - News) is pleased to announce that it has entered into a $2.5 million Investment agreement from NX Petroleum Inc. for the development of the company's Oil assets.
In addition, UnionTown has entered into an acquisition agreement with NX Petroleum whereby NX Petroleum will acquire UnionTown Drilling Inc., the subsidiary of UnionTown Energy Inc. that owns and operates the company's assets, in a share exchange on listing of the entities on a European Exchange.
NX Petroleum is under a Letter Of Intent to be acquired by a European listed Oil Company which will be announced in the near future.
Reorganization Key Points
- UnionTown Energy is issuing shares from its wholly owned subsidiary, UnionTown Drilling Inc. to NX Petroleum Inc. Under the terms of the agreement, NX Petroleum Inc. shall have first right of refusal for further financing under the same terms, specifically as to the debt held by UnionTown Drilling Inc. from shareholder loans and all assets. Under these terms, NX Petroleum Inc. will issue its shares to UnionTown Energy Inc. To acquire the remaining shares of UnionTown Drilling Inc. on a share exchange basis upon conclusion of NX Petroleum Inc listing on a European exchange.
- NX Petroleum Inc. is in the final stages of working with a European listed company to become listed and has a letter of intent with a European Listed Oil Company.
- In this way, UnionTown Energy Inc. will own approximately 48% of a publicly traded company in Europe, with its shareholders retaining their shares in the USA-based entity, UnionTown Energy Inc.
- UnionTown Energy Inc. will retain a 10% working interest in the New Miami Property.
- It is then the intent to list UnionTown Energy Inc. on the Canadian National Stock Exchange http://www.cnsx.ca/ or a similar exchange with a goal of listing on the NYSE Euronext (NYX) or a similar USA Exchange. Efforts on this front will begin immediately.
- UnionTown Energy Inc. will be working with its accountants and auditors to become fully reporting and compliant again.
- Michael Butterfield has resigned from UnionTown Energy Inc. and has been appointed and accepted the position of Chief Executive Officer at NX Petroleum Inc. to ensure continuity and a smooth transition for the continued development of the Oil assets.
- Patrick Smyth has been appointed and accepted the position of Chief Executive Officer and Director at UnionTown Energy Inc.
- John Karlsson has been appointed and accepted the position of General Counsel and Director at UnionTown Energy Inc.
New Miami Operations
As reported on April 10th in the Fairfield Sun Times: "On Saturday afternoon, UnionTown's New Miami well was observed in production with some product now being delivered from #42-20H to the refinery." See the entire article here at http://www.fairfieldsuntimes.com/articles/2012/04/11/news/doc4f8377d51cfa3599757266.txt
The Company encountered higher than expected levels of water from its first well, #42-20H, and significant changes have been ongoing since January. Well #42-20H now has a Halliburton "Super Pump" (patented pump GP4-17S0) on it, which specifically addresses the issues that caused some problems during completion as we are now able to handle high volumes of liquids and gas.
The second well that is being drilled at New Miami has hit the horizontal phase of the drilling, and the Company's operators and consultants reported that the pay zone is much greater than that in the first New Miami well pay zone.
About UnionTown Energy Inc.
UnionTown Energy Inc. (UTOG) is an independent oil and gas company that invests in oil and gas properties focussing on seed through early stage growth equity with the goal of creating a return for investors through potential dividends and liquidity in its public market. The Company has made an initial investment into a new venture and continues to explore new opportunities in the Energy Sector. It is currently being funded and operating under an investment and acquisition agreement whereby on completion UTOG will owns 48% of the shares of a European listed oil company and retain a 10% interest in the New Miami Property. UnionTown Energy Inc. is a proud member of the Montana Petroleum Association. For more information about our company, please visit www.UnionTownEnergy.com.
The information in this release includes forward-looking statements. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this release. Although the Company believes that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. These forward-looking statements, specifically statements relating to expectations regarding commercial viability or production from its properties may well involve risks and uncertainties that include, among others, fluctuations in natural gas and crude oil prices; the timely receipt of necessary permits and approvals; market demand for, and/or available supplies of, energy-related products and services; unanticipated project delays, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. You should carefully review the information disclosed within the section entitled "Risk Factors" contained in the Company's Report on Form 10Q/A filed on September 23, 2011, as well as the information contained in this release, when assessing the Company and its business. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Additional information may be found at the following web site: http://www.sec.gov/divisions/corpfin/guidance/cfoilgasinterps.htm