UnionTown Energy Inc., a company focused on building an oil and gas natural portfolio, yesterday issued an operational update on its current planned drilling programs and financing. The company’s near-term objective is to enter into productivity, which it plans to achieve with the prove-up of indicated reserves to reach their full value potential.
UnionTown Energy has assembled four properties in its first phase of property acquisitions, which total more than 45,000 acres with promising oil and gas prospects. Third-party geological reports, along with previous drill test wells, suggest estimated recoverable reserves of approximately 133 million barrels of oil equivalent on 75% of the properties.
Additionally, a geological report is now being assembled on the 11,000-acre Teton River property, which may increase the company’s reserve total.
The Teton River acquisition comes with five drill targets that have already been permitted and are ready to drill, at $200,000 per well. The company noted that this location is about 30 feet from a previously drilled test well that was producing 49 barrels a day. Drilling is expected to commence in June.
The New Miami project is undergoing preparations to receive the drilling rig, with a start date scheduled for May 25. An $800,000 horizontal well has already been funded. The drilling and completion schedule is expected to occur within 60 days from the drilling start date.
The company said it considers the Teton River and New Miami projects to be low risk, and that financial resources provided from its first $3 million private placement are enough to support operations for these projects.
The third project, the Darby Block, is a 25,000-acre property surrounded by several oil and gas majors, including big names like Shell, Exxon, Chevron and Amoco, which are currently in production. The company is preparing to acquire the 3-D seismic of the property to determine and identify reserve and initial drill targets.
The fourth property, the Musselshell, was the company’s first acquisition, located on an estimated ultimate recoverable reserve of 10.4 million barrels of oil.
For more information visit www.UnionTownEnergy.com