ST. PETERSBURG, Fla. - US Natural Gas Corp (OTC Pink:UNGS), an enery exploration company with operations in the Appalachian Basin is pleased to inform shareholders that the Company has increased production by more than two hundred percent on the first test well as part of its recently announced test pilot program on the Company's Wayne County, West Virginia natural gas development field.

The Company selected the R Shannon No. 5 well as the first well to address due to the consistently high production of fluid from the producing formation (Devonian Shale). Daily production rates prior to the down-hole work averaged 50 MCF/day. After all tubing was removed from the well, a submersible down-hole gas separator was installed at the end of the tubing before running it back down-hole. A 50 barrel fluid collection tank was set next to the well for fluid recovery and for determination if any fluid was crude versus salt water. After two weeks of monitoring gas production after completion of work, the R Shannon No. 5 daily production rates have averaged 178 MCF/day.

The advantages of the submersible down-hole gas separator are numerous and consist of: more consistent production with subs due to more consistent draw on formation, higher water volume capability with submersibles for wells with higher inflow, less downtime with submersibles, major savings on fuel, truck maintenance and pumper wages, and submersibles run only when need to so you have better electrical efficiency, just to name a few.

"We are very pleased at the initial production results for the R Shannon No. 5," said Wayne Anderson, President of US Natural Gas Corp. "With the results shown, we will most certainly be moving towards Phase I of our test pilot program in the coming weeks. The economics of rapidly increasing productivity will allow us to be more aggressive in our acquisition approach."