Shawshank, VA 5/18/2011 (PennyPayDay) -- UnionTown Energy Inc. (OTC:UTOG) announced yesterday, in a press release, that it has advanced an additional $175,000 in trust towards the close of its previously announced acquisition of the Teton River property. Teton River is an 11,000-acre oil and gas property located in northwest Montana.UnionTown has now advanced a total of $275,000, representing the full purchase price of the property, towards the completion of the acquisition.
Under the terms of the acquisition agreement, UnionTown is required to spend an additional $1,000,000 within the next 12 months on development of the property. In return, the company will receive an 85% working interest before payout, followed by a 70% working interest after payout. The Teton River property carries a 75% net revenue interest.
"Oil exploration and development has reached an exciting stage in northwest Montana, and we consider Teton River to be a high-potential acquisition based on the production history in nearby oil fields and the well records of previous wells drilled on the property," said UnionTown President and CEO Darren Stevenson. "Moreover, Teton River is a heavy oil play, and with heavy oil currently selling for more than $US90 per barrel, we believe there is a great opportunity in developing this promising oil prospect."
Teton River is the fourth acquisition that UnionTown has undertaken in the last two months. When Teton River is combined with the three previously announced properties -- Musselshell, New Miami and Darby Block -- the total acreage under contract now exceeds 43,000. The Company believes that the Teton River geological report, which is close to completion, will significantly add to the company's estimated reserves.
For more information, please visit: www.UnionTownEnergy.com.
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