ST. PETERSBURG, Fla. - US Natural Gas Corp (OTC Pink:UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to inform shareholders that the Company has expanded its portfolio of oil producing properties through the acquisition of five previously producing wells located in Allen County, Kentucky.
The project, located on a 290 acre lease in Allen County, KY, is in close proximity to the Company's two other oil leases within the same county. All five of the wells located in the Cincinnati arch basin showed production from the Coniferous formation. The average total depth for all five wells is 480' with production occurring from 377-412'.
All five wells have 6 5/8" casing set to approximately 150'. The Company intends to run 2 7/8" tubing to approximately 450' leaving a 30' rat-hole for installation of the 5/8" rods, down-hole pump and oil reservoir. The wells will then be placed on pump for delivery of crude to a central tank battery. After 90-120 days of pumping, the Company will determine if it is feasible to re-enter the one plugged well. At its election, the Company may complete a light acid treatment of one or more of the wells to boost productivity.
The Company anticipates that it will complete the re-work of the four wells within the current fiscal quarter. Management's projection for production from the four wells collectively is 10 BOD (barrels of oil per day) based on 2.5 BOD for each well. If these projections are fulfilled, the Company will place the remaining one plugged well into production. Production projections will be increased by 30-50% if the Company elects to complete a light acid treatment on the wells. The Company maintains a 100% working interest and 87.5% net revenue interest in each well.
"We are very pleased to announce this acquisition to further expand our Kentucky operations," said Wayne Anderson, President of US Natural Gas Corp. "Due to the shallow depth of these wells, the Company will be able to place them into production quickly and with a very minimal capital expenditure. As previously stated, our goal is to acquire properties with a consistent production history. I anticipate that the Company will be updating shareholders on several additional acquisitions in the near future."
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. More information on US Natural Gas Corp can be found on the Company’s website at 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 Unaudited Annual Report for the year ended December 31, 2012, which can be found on the OTC Markets website, www.otcmarkets.com.
Contact:
US Natural Gas Corp
(727) 482-1505
info@usnatgascorp.com
