US Natural Gas Corp Board Announces Increase in Authorized Shares and Designation of Series C Preferred Stock

ST. PETERSBURG, Fla., April 20, 2011 /PRNewswire/ -- US Natural Gas Corp (OTCQB: UNGS), an energy exploration company with operations in the Appalachian Basin announced that its Board of Directors has approved a resolution authorizing an increase in the number of authorized shares of the Corporation's common stock from 200,000,000 to 300,000,000 as well as the designation of a new series of Preferred stock.

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The resolution to increase the authorized shares and designate a new series of Preferred stock was approved by the Board of Directors and shareholders holding a majority of our outstanding voting capital stock on April 14, 2011. An amendment to the Company's Articles of Incorporation was filed with the Florida Department of State on April 18, 2011. The Company filed a current report on Form 8-K on April 19, 2011 with the attached amendment detailing the designation, preferences, and other rights and qualifications of the Series C Preferred stock.

"The Board of Directors believes that an increase in the number of shares of authorized common stock and the designation of the Series C Preferred stock will benefit the Company and our stockholders by allowing us to pursue targeted acquisitions such as the Pine Grove project and other oil and natural gas producing entities," stated Wayne Anderson, President of US Natural Gas Corp.  

In preparation for the closing on the Pine Grove project acquisition previously announced on March 21, 2011, US Natural Gas Corp KY took delivery of its newly acquired 10T Smeal work-over rig. Upon closing, the Company will initially place twelve of the twenty-five wells into production. Anticipated production from these twelve wells as a group is 10-12 BOD. Over the course of the second half of 2011, the Company will re-enter the remaining thirteen oil producing wells and run a series of down-hole studies to determine which wells are best candidates for acid or foam acid stimulation. The Company will also replace tubing, rods, pumps, electrical and any remaining completion components needed to place these wells into production. The Company anticipates that once all twenty-five wells are placed into service production will average 25-30 BOD.

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 natural 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, 2010.

Contact:
US Natural Gas Corp
Shannon Bell, Executive Assistant
(727) 824-2800
[email protected]

SOURCE US Natural Gas Corp