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
info@usnatgascorp.com
SOURCE US Natural Gas Corp