Good morning fellow investors,
UnionTown Energy (UTOG) announced this morning at 6:30AM EST a Letter to Shareholders from the board of directors.
We are long and strong on UTOG and this press is positive news and a great update from the company. We will offer more insights later today, but wanted to get you the news as quickly as possible before opening bell.
The full release can be read here: http://www.marketwire.com/press-release/UnionTown-Energy-Inc- UTOG-Update-to-Shareholders-1425325.htm
UnionTown Energy Inc. (UTOG) Update to Shareholders
BILLINGS, MT--(Marketwire - April 11, 2011) - UnionTown Energy Inc. (OTCBB: UTOG), an independent oil and gas company, today provided an update to shareholders in an open letter from the Company's Board of Directors.
Dear UnionTown Shareholders:
We are pleased to review our business activities to date for 2011 and share our progress on ongoing initiatives aimed at increasing shareholder value.
The past few months have been very exciting at UnionTown. Our Company has undergone positive transformation and accomplished key growth goals -- including the acquisition of two oil and gas properties -- that set the stage for further expansion and continued success. In making the decision to join UnionTown, Darren Stevenson, President and CEO, stated, "The portfolio of projects that UnionTown has access to is very exciting and for this reason I decided to join the team and ensure we complete the acquisitions and move immediately into the operations phase."
In preparation of the upcoming operations and related fundraising activities, we will be engaging with a number of independent research analysts to begin coverage of UnionTown. This activity will only help the investing public better understand our business and valuation proposition.
Our management team is fully engaged and committed to building a successful oil and gas company focused on acquisition, development and production here in North America. We have 100% confidence in our business plan and in the ability of our team to execute it profitably on behalf of our shareholders.
Our Properties
We are pleased to have completed the acquisitions of two oil and gas properties in the past week. The Musselshell and New Miami properties, both located in Montana, represent a combined estimated recoverable oil reserve of more than 12.8 million barrels. These acquisitions have added significantly to the value of Company.
Musselshell Property
Our acquisition of the Musselshell, which straddles the Heath and Amsden formations in central Montana, closed on April 6, 2011. Musselshell has an estimated recoverable oil reserve of 10.4 million barrels. The property was previously drilled and the well log results show the Heath formation to be a potential producible zone. We plan to apply horizontal drilling technology to exploit the well to its fullest potential. It has been reported that similar horizontal drilling approaches in nearby wells have achieved initial production of approximately 340 barrels of oil per day. We believe that the western half of the property, which covers the Heath, has the potential to support 16 horizontal drill sites with 2,000 foot horizontal legs. Seismic data on the eastern half of the property, which covers the Amsden, also shows exploration potential.
We will commence drilling at Musselshell later this month.
New Miami Property
We concluded our acquisition of the New Miami on April 8, 2010. This 1,480-acre property, situated in the Sweetgrass Arch area of Northwest Montana, has an estimated recoverable oil reserve of 2.4 million barrels, as stated in a third-party, non-commissioned report provided to the Company. Two of the wells have already determined the New Miami sits atop a shallow oil accumulation.
Our talented technical teams believe that the property may accommodate up to 17 shallow horizontal oil well drill zones.
Further Property Acquisitions
On April 1, 2011, we reported that we had advanced a down payment on a third oil and gas property. More details on this acquisition will be announced in the coming days.
Additionally, we are making good progress on other property acquisitions that are in the advanced stages of negotiations. Announcements on these potential acquisitions will be made as details become available.
Our intention is to continue expanding our resource holdings aggressively through acquisitions.
Financing Our Growth
Our growth strategy is based on building a base of land positions with known oil and gas formations that have the potential to be developed into producing and proven reserves.
These acquisitions are being financed by a combination of cash, restricted common stock and providing a participating net revenue interest (NRI) to the property sellers.
We have to date closed on 2 cornerstone properties using this formula. These properties now give us an adequate foundation to show real asset value that we can leverage to increase our overall financial position.
We have to date closed on 2 cornerstone properties using this formula. These properties now give us an adequate foundation to show real asset value that we can leverage to increase our overall financial position.
We have used a portion of this advance to fund the initial cash component of the acquisitions and the initial operations and development programs. As well, the financing has been used to fund a down payment in trust on a third property acquisition.
Further, we are now in a position financially to advance funds to cover the cost of a drilling program on the New Miami property. We are currently finalizing details on this program. We believe these activities will result in further asset appreciation as we begin to prove up the reserves and commence production operations resulting in positive cash flows. We are now commencing discussions with financial institutions for our next stage of financial requirements.
Rest assured that we will act in your best interests at all times and as we move forward with your company, creating both growth and value.
Oil and Gas Industry
We remain committed to the oil and gas industry within the United States. There is a push to develop America's untapped energy resources and reduce our dependence on foreign oil. New technologies such as horizontal drilling and hydraulic fracturing have the potential to unlock the wealth in these reserves. Previously, it was common to recover about 20% of a reserve. Today's technology pushes recovery rates to 80% and higher. Further, the current high price of oil adds substantially to the overall opportunity.
Our company sees significant potential in Montana's under-developed shale fields, and we're moving swiftly to build our land portfolio in the state. Montana is supportive of oil and gas activity, including the use of the latest technologies for enhancing recovery. We intend to become a solid participant in Montana's energy sector and a steady oil and gas producer for many years to come.
It's clear that the oil and gas industry will play a pivotal role in supplying the world with energy far into the future. We continue to see oil prices rising making UnionTown's return on investment very attractive.
In Closing
UnionTown's management is committed to open and frequent communication with the company's shareholders and we have a strong desire to see UnionTown prosper and grow in value well into the future.
Our board hopes we have succeeded in conveying to you that 2011 is shaping up to be a momentous year for your company. We look forward to providing continued updates on UnionTown's progress and thank you for your ongoing confidence and support.
Sincerely
The Board of Directors - UnionTown Energy Inc.
UTOG: Long and strong!
Big sky country, big sky stock!
As always, we encourage you to do your due diligence thoroughly before making a buying decision. For more information about UnionTown Energy, visit the company website at www.UnionTownEnergy.com
Sincerely,
UnionTown Energy (UTOG) announced this morning at 6:30AM EST a Letter to Shareholders from the board of directors.
We are long and strong on UTOG and this press is positive news and a great update from the company. We will offer more insights later today, but wanted to get you the news as quickly as possible before opening bell.
The full release can be read here: http://www.marketwire.com/press-release/UnionTown-Energy-Inc- UTOG-Update-to-Shareholders-1425325.htm
UnionTown Energy Inc. (UTOG) Update to Shareholders
BILLINGS, MT--(Marketwire - April 11, 2011) - UnionTown Energy Inc. (OTCBB: UTOG), an independent oil and gas company, today provided an update to shareholders in an open letter from the Company's Board of Directors.
Dear UnionTown Shareholders:
We are pleased to review our business activities to date for 2011 and share our progress on ongoing initiatives aimed at increasing shareholder value.
The past few months have been very exciting at UnionTown. Our Company has undergone positive transformation and accomplished key growth goals -- including the acquisition of two oil and gas properties -- that set the stage for further expansion and continued success. In making the decision to join UnionTown, Darren Stevenson, President and CEO, stated, "The portfolio of projects that UnionTown has access to is very exciting and for this reason I decided to join the team and ensure we complete the acquisitions and move immediately into the operations phase."
In preparation of the upcoming operations and related fundraising activities, we will be engaging with a number of independent research analysts to begin coverage of UnionTown. This activity will only help the investing public better understand our business and valuation proposition.
Our management team is fully engaged and committed to building a successful oil and gas company focused on acquisition, development and production here in North America. We have 100% confidence in our business plan and in the ability of our team to execute it profitably on behalf of our shareholders.
Our Properties
We are pleased to have completed the acquisitions of two oil and gas properties in the past week. The Musselshell and New Miami properties, both located in Montana, represent a combined estimated recoverable oil reserve of more than 12.8 million barrels. These acquisitions have added significantly to the value of Company.
Musselshell Property
Our acquisition of the Musselshell, which straddles the Heath and Amsden formations in central Montana, closed on April 6, 2011. Musselshell has an estimated recoverable oil reserve of 10.4 million barrels. The property was previously drilled and the well log results show the Heath formation to be a potential producible zone. We plan to apply horizontal drilling technology to exploit the well to its fullest potential. It has been reported that similar horizontal drilling approaches in nearby wells have achieved initial production of approximately 340 barrels of oil per day. We believe that the western half of the property, which covers the Heath, has the potential to support 16 horizontal drill sites with 2,000 foot horizontal legs. Seismic data on the eastern half of the property, which covers the Amsden, also shows exploration potential.
We will commence drilling at Musselshell later this month.
New Miami Property
We concluded our acquisition of the New Miami on April 8, 2010. This 1,480-acre property, situated in the Sweetgrass Arch area of Northwest Montana, has an estimated recoverable oil reserve of 2.4 million barrels, as stated in a third-party, non-commissioned report provided to the Company. Two of the wells have already determined the New Miami sits atop a shallow oil accumulation.
Our talented technical teams believe that the property may accommodate up to 17 shallow horizontal oil well drill zones.
Further Property Acquisitions
On April 1, 2011, we reported that we had advanced a down payment on a third oil and gas property. More details on this acquisition will be announced in the coming days.
Additionally, we are making good progress on other property acquisitions that are in the advanced stages of negotiations. Announcements on these potential acquisitions will be made as details become available.
Our intention is to continue expanding our resource holdings aggressively through acquisitions.
Financing Our Growth
Our growth strategy is based on building a base of land positions with known oil and gas formations that have the potential to be developed into producing and proven reserves.
These acquisitions are being financed by a combination of cash, restricted common stock and providing a participating net revenue interest (NRI) to the property sellers.
We have to date closed on 2 cornerstone properties using this formula. These properties now give us an adequate foundation to show real asset value that we can leverage to increase our overall financial position.
We have to date closed on 2 cornerstone properties using this formula. These properties now give us an adequate foundation to show real asset value that we can leverage to increase our overall financial position.
We have used a portion of this advance to fund the initial cash component of the acquisitions and the initial operations and development programs. As well, the financing has been used to fund a down payment in trust on a third property acquisition.
Further, we are now in a position financially to advance funds to cover the cost of a drilling program on the New Miami property. We are currently finalizing details on this program. We believe these activities will result in further asset appreciation as we begin to prove up the reserves and commence production operations resulting in positive cash flows. We are now commencing discussions with financial institutions for our next stage of financial requirements.
Rest assured that we will act in your best interests at all times and as we move forward with your company, creating both growth and value.
Oil and Gas Industry
We remain committed to the oil and gas industry within the United States. There is a push to develop America's untapped energy resources and reduce our dependence on foreign oil. New technologies such as horizontal drilling and hydraulic fracturing have the potential to unlock the wealth in these reserves. Previously, it was common to recover about 20% of a reserve. Today's technology pushes recovery rates to 80% and higher. Further, the current high price of oil adds substantially to the overall opportunity.
Our company sees significant potential in Montana's under-developed shale fields, and we're moving swiftly to build our land portfolio in the state. Montana is supportive of oil and gas activity, including the use of the latest technologies for enhancing recovery. We intend to become a solid participant in Montana's energy sector and a steady oil and gas producer for many years to come.
It's clear that the oil and gas industry will play a pivotal role in supplying the world with energy far into the future. We continue to see oil prices rising making UnionTown's return on investment very attractive.
In Closing
UnionTown's management is committed to open and frequent communication with the company's shareholders and we have a strong desire to see UnionTown prosper and grow in value well into the future.
Our board hopes we have succeeded in conveying to you that 2011 is shaping up to be a momentous year for your company. We look forward to providing continued updates on UnionTown's progress and thank you for your ongoing confidence and support.
Sincerely
The Board of Directors - UnionTown Energy Inc.
UTOG: Long and strong!
Big sky country, big sky stock!
As always, we encourage you to do your due diligence thoroughly before making a buying decision. For more information about UnionTown Energy, visit the company website at www.UnionTownEnergy.com
Sincerely,
Mike
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