ST. PETERSBURG, Fla., March 30, 2011 /PRNewswire/ -- US Natural Gas Corp (OTCQB: UNGS), an energy exploration company with operations in the Appalachian Basin is pleased to announce that the Company has recently acquired a newly rebuilt Knox Western compressor to be set at the Company's West Virginia natural gas development project compressor station.
The newly acquired compressor is a 2 stage Knox Western with a three phase 250 hp Reliance engine. The compressor will replace the currently operational compressor set on the Company's Wayne County, West Virginia natural gas development project. The new compressor was refurbished in late 2010 and the specifications for delivery will allow the Company to deliver up to 1.2 million cubic feet of natural gas on a daily basis. The compressor is scheduled to be set and plumbed in the first week of April.
US Natural Gas Corp WV, a wholly owned subsidiary, is in discussions with a local natural gas producer regarding a potential acquisition of its entire operations. If completed, the acquisition will add approximately 5000 acres of mineral rights leases and 42 operational natural gas wells of which 21 are currently in production. Current production is sold on a contract basis to a local utility company, with outside purchasing opportunities available. Management anticipates that discussions will continue over the coming weeks as further due diligence is completed, and a final decision reached during the second quarter.
"The addition of the new compressor will allow us to place wells into production with the confidence that our system can handle the increased gas volume on a daily basis," stated Wayne Anderson, President of US Natural Gas Corp. "We are excited to entertain the potential acquisition of a well respected producer in our area of operation. Management will continue to identify potential acquisition targets who concentrate on the production of natural gas so long as the commodity is priced below five dollars. If we see a sustained move above the five dollar level, our focus will slowly shift to that of exploration on our leasehold base."
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 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: US Natural Gas Corp Shannon Bell, Executive Assistant (727) 824-2800 [email protected]