Yesterday, UnionTown Energy, Inc. announced that it had signed a definitive agreement to obtain a 7,000 acre property in Montana (known as the Musselshell) that could yield oil and natural gas. This purchase was announced in a letter of intent on February 16 of this year, and the agreement is scheduled to be finalized within a month.
UnionTown acquires and develops oil and gas bearing properties, and is currently building a portfolio of energy producing assets through North America. Montana has recently issued drilling permits that will allow for oil exploration in the Mississippian Heath shale located in the Central Montana Trough. The horizontal drilling areas are located in the counties of Garfield, Petroleum, Fergus, Musselshell and Rosebud.
The Musselshell property contains the Heath-Tyler and Amsden formations. The Heath-Tyler formation, made up of the source rock Heath Formation and the sandstone reservoir rock Pennsylvania Tyler Formation. This has produced approximately 100 million bbl of oil encompassing 25 fields. More details of the acquisition and the property will be released when the agreement is closed.
“We believe that the Heath and Amsden formations are at a very exciting stage now, much like the Bakken was a decade ago,” states Mr. Fields, President of UnionTown Energy. “This transaction encompasses two plays, the Amsden formation, with large producing fields nearby, and the new exciting Heath formation. With this project now in progress we continue to examine other land positions. We are committed to advancing our property acquisitions in Montana and enhancing shareholder value.”