ST. PETERSBURG, Fla., July 11, 2012 /PRNewswire/ -- US Natural Gas Corp (OTC Pink: UNGS), an energy exploration company with operations in the Appalachian Basin announced today that the Company has entered into the bidding process to acquire the operations of a natural gas production company located in Wayne County, West Virginia.
If successful, the acquisition would add 40 producing natural gas wells and 9000 acres of mineral rights leases to its current portfolio bringing the total to 162 natural gas wells and 21,000 acres of mineral rights under lease all within the same county. The 40 natural gas wells produce on average 5000 MCF per month. Management projects this level of production to increase by 50 percent after each of the wells is addressed under a water maintenance plan.
The Company will have two options for delivery from this newly acquired field. Current production is transported to a local utility company with hedging at prices well above the spot price for natural gas. In addition, a separate active transmission line crosses one segment of the leasehold base. The Company has been afforded the opportunity to tap into this line for an alternative transmission and delivery method.
The Company is currently in negotiations with two potential partners to joint venture on the acquisition. The Company would retain the operations of the gas company, while the joining partner would retain the acquired mineral rights. The Company would simultaneously lease the acquired mineral rights from its partner. The Company will submit its bid on July 13, 2012. The winning bidder will be notified prior to month's end with the closing transaction to take place during the month of August. Terms of the proposed acquisition have not been disclosed.
"The proposed acquisition will complement our producing properties in West Virginia," said Wayne Anderson, President of US Natural Gas Corp. "To be afforded the opportunity to acquire an operation of this size within 20 minutes of our current operation is extremely beneficial. We look forward to submitting our bid later this week and will keep shareholders abreast of the outcome."
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. More information on US Natural Gas Corp can be found on the Company's website at 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 Unaudited Annual Report for the year ended December 31, 2011, which can be found on the OTC Markets website, www.otcmarkets.com.
US Natural Gas Corp
SOURCE US Natural Gas Corp