ST. PETERSBURG, FL--(Marketwire - February 1, 2011) - US Natural Gas Corp (
The Company anticipates taking delivery of the Smeal workover rig during the month of February. The rig will be mobilized to select producing wells to pull rods, tubing, pumps, and replace cups. Upon completion, operational focus will be shifted to the Detweiler lease in Hart County, Kentucky where the rig will be utilized to bail eight open wellbores to determine fluid productivity. Management will then determine whether to complete further downhole studies, stimulate the wells via hydraulic fracturing, immediately place the wells into production, or plug the wells.
The Company's KY subsidiary is currently completing due diligence on the acquisition of a 25 well package located on approximately 1000 acres in Edmonson County, KY. Initial production from the wells as a group is anticipated to be in the range of 5-10 BOD.
"The acquisition of the workover rig will allow us to address each well as needed in a much more timely and economical fashion in an effort to increase productivity," stated Wayne Anderson, President of US Natural Gas Corp. "By tending to our currently producing wells and placing new wells into production, the Company continues to work towards its goal of 500 barrels of production per month. We expect to make a decision on the Edmonson County project prior to month's end and will update shareholders as negotiations progress."
About US Natural Gas Corp
US Natural Gas Corp is an independent energy company principally engaged in the acquisition, exploration and development of mature long-lived oil and natural gas properties. The company's current operations are concentrated in the Appalachian Basin within the states of Kentucky and West Virginia with core assets consisting of 17,000 acres of mineral rights leases and interest in approximately 150 oil and gas wells. www.usnatgascorp.com
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2009.
Contact Information:
Contact:
US Natural Gas Corp
Shannon Bell
Executive Assistant
(727) 824-2800
ir@usnatgascorp.com