US Natural Gas Corp Acquires Six Producing Oil Wells in Adair County, KY
Oct 30, 2013
OTC Disclosure & News Service
St. Petersburg, FL -
Company Increases Daily Oil Production Projections to 42-48 BOD
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 acquired an additional six oil wells currently in production located in Adair County, KY.
The newly acquired 313 acre leasehold houses six producing wells and two plugged wells. The average depth of the producing wells is 1350? TD (?Total Depth?) with production from the Sunnybrook and Stones River formations. All six producing wells are fully equipped with an established tank battery and will be placed into production immediately.
In addition to the acquisition of the six producing wells, the Company has agreed to drill at least two wells on the newly acquired lease to a depth of approximately 1500? TD. The Company has an option to drill an additional eight wells over the next eighteen months. Initiation of drilling will commence during the first quarter of 2014. The Company will retain a 100 percent working interest, 80 percent net revenue interest on all newly acquired wells as well as any newly drilled wells.
The Company projects each of the six producing wells to produce on average 1.5 BOD ("barrels of oil per day"), which equates to an additional $300,000 in annual revenue based on current crude pricing. With this acquisition, the Company is raising its projections for daily production of crude from 35-40 BOD to 42-48 BOD. The Company?s projections are not inclusive of any production from the newly drilled wells.
"We are excited to report this acquisition to shareholders, as it shows Management?s commitment to acquisitions which are immediately accretive to earnings, "said Wayne Anderson, President of US Natural Gas Corp. "This acquisition marks a significant step in executing the Company?s short term plan outlined in our corporate business plan, provides stable cash flow, and possesses low risk oil development re-entry and new drilling production opportunities.?
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 http://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, http://www.otcmarkets.com/ .
Contact: US Natural Gas Corp
(727) 482-1505
