UnionTown Energy Inc., a company that focuses on acquiring, developing, and producing oil and natural gas properties in North America, has announced that it has signed a non-binding Letter of Intent (LOI) to acquire the 11,000+acre Teton River oil and gas property located in northwest Montana.
A non-refundable deposit worth $100,000 has been given in advanced upon signing the LOI, which will be applied to the final purchase price. The specific terms of the agreement are being finalized and will be announced upon closing of the transaction, which is expected to take place in the next 30 days.
The Swift Sandstone oil field is the main reservoir target. Downdip oil on the Belt Island High was first discovered around 1980 and led to further exploration in the area.
Two neighboring oil fields, the Bannatyne and Utopia, are currently producing from the Swift formation. UnionTown believes that Swift Sandstone offers better porosity, oil saturation, permeability, and feet of pay than is present in the other neighboring fields. Exploration wells drilled in the past on the Teton River property have shown promising results.
“We are excited to have signed a letter of intent to acquire the Teton River property, which has nearly 28 years of exploration history and shows great medium-term production potential,” said UnionTown’s President and CEO Darren Stevenson. “The combination of higher overall oil prices in the foreseeable future and recent advances in recovery technologies, such as Steam Assisted Gravity Drainage (SAGD), makes this acquisition very attractive to us at this time.”
Tento River is the third Montana oil property that has become a target for UnionTown’s acquisition in the past month. The previous two acquisitions, Musselshell and New Miami, have been successfully closed and have recovered oil reserves of 12.8 million barrels over approximately 8,480 acres combined.
For more information on UnionTown Energy Inc. and its projects and acquisitions, visit their company website: www.uniontownenergy.com