UnionTown Energy, the North America-focused oil and gas developer reported consolidation of the material terms for a definitive agreement today whereby the Company will acquire the promising “New Miami” resource property. UnionTown has also issued a non-refundable $300k advance in conjunction with the move towards acquisition that will contribute to the eventual purchase price.
The New Miami property in northern Montana rests within a tantalizingly prolific oil and gas district that has seen in excess of 300M barrels of oil and 500B cubic feet of natural gas to date, all produced within a 50 mile radius.
This acquisition bears all the fundamental characteristics of surrounding fields and one proximal field some 4 miles away alone has exceeded 30M barrels, making the New Miami a high-potential acquisition target for UTOG.
Projections by UTOG indicate the capacity for some 17 shallow, horizontal oil wells, which could be brought up to production speed very quickly by industry standards and at attractively low cost/risk. Projections confirmed by the existence of two previously drilled wells which have validated the shallow oil accumulation directly under the property.
Reports on extant drilling, whose data is characterized as being conservative, have led to the consider analysis by UTOG that the property holds an estimated 2.4M barrels of oil recoverable.
President and CEO of UTOG, Darren Stevenson, remarked on the Company’s intentions to move forward rapidly with a comprehensive drilling program at New Miami, saying that the planned horizontal drilling program would be designed to maximize exploitation of the available resource.
Stevenson concluded by pointing out the upside to UTOG shareholders, noting clearly that the accelerated development of this low risk property, which has strikingly positive indicators of high productivity, will directly translate into exceptional returns and called the move to acquire the New Miami as an important milestone in the Company’s history.