ST. PETERSBURG, Fla.,
July 26, 2011 /PRNewswire/ -- US
Natural Gas Corp (OTCQB: UNGS), an energy exploration company with
operations in the Appalachian Basin is pleased to announce that it
has closed on the acquisition of the Pine Grove Project located in
Edmonson County, Kentucky.
(Logo:
http://photos.prnewswire.com/prnh/20110303/HS58643LOGO)
Included within the acquisition is twenty-five previously
producing oil wells, two water injection wells, mineral rights
leases covering 600 acres, a deed for 182 acres of additional
mineral rights, 10 collection tanks varying in size from 100-210
barrels, eighteen pumpjacks, and all completion components. The
wells are drilled to an average total depth ("TD") of 1400 ft. with
the primary formation of production being the Devonian Clear Creek.
The drillers log shows another potential production zone known as
the Dutch Creek formation which the Company may elect to treat in
the future.
At present, twelve of the twenty-five wells can be placed into
immediate production. The remaining thirteen wells will be
addressed and placed into production over the next two to three
months. The Company anticipates that the work to place these wells
into production will be limited to replacing tubing, motors,
electrical, and minor above ground components.
The Company's projected production from the twenty five wells is
on average 22 BOD (barrels of oil per day). At conservative pricing
of $70/barrel for oil, the Company's
two year revenue estimate is $1.1
million from this newly acquired oil field.
"We are excited to close this acquisition and move forward with
placing the wells in production," stated Wayne Anderson, President of US Natural Gas
Corp. "The addition of these twenty five producing wells gives us a
total of 44 wells now in production in Kentucky. We will continue to entertain
acquisitions and joint ventures to increase our well count and
daily production."
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
info@usnatgascorp.com
SOURCE US Natural Gas Corp