Lincoln, NE 4/28/2011 (PennyPayDay) -- UnionTown Energy Inc. (OTC:UTOG) announced, in a press release, yesterday that it had over subscribed the $2,500,000 private placement announced on March 23, 2011.The placement was increased to $3,000,000 on April 21, 2011. The Company will issue 1,200,000 restricted common shares priced at $2.50 for a financing total of $3,000,000.
The Company will direct $1,000,000 of the proceeds to complete the non-refundable deposit portion of the Darby Property Purchase Agreement that was entered into on April 25, 2011.
Furthermore, the Company reports that negotiations are under way for a non-brokered, private placement for aggregate gross proceeds of up to $5,000,000.
This potential financing is the second in a series the Company is contemplating to support its growth strategy of acquiring oil and gas exploration and development properties for production. Specifically, it is being contemplated that these funds will be allocated to the Darby Miller Mountain prospect drilling program and will be counted towards the Darby block purchase price.
UnionTown Energy is focused on the acquisition, exploration, development and production of oil and natural gas properties. For more information about the company, please visit www.UnionTownEnergy.com.
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