|A rig drills UnionTown’s second “New Miami” well last month. Sun Times photo by Darryl L. Flowers|
New Miami #42-20H upgraded for production, second well being drilled on Montana Property
In addition, UnionTown has entered into an acquisition agreement with NX Petroleum whereby NX Petroleum will acquire UnionTown Drilling Inc., the subsidiary of UnionTown Energy Inc. that owns and operates the company’s assets, in a share exchange on listing of the entities on a European Exchange.
NX Petroleum is under a Letter Of Intent to be acquired by a European listed Oil Company which will be announced in the near future.
Reorganization Key Points
UnionTown Energy is issuing shares from its wholly owned subsidiary, UnionTown Drilling Inc. to NX Petroleum Inc. Under the terms of the agreement, NX Petroleum Inc. shall have first right of refusal for further financing under the same terms, specifically as to the debt held by UnionTown Drilling Inc. from shareholder loans and all assets. Under these terms, NX Petroleum Inc. will issue its shares to UnionTown Energy Inc. To acquire the remaining shares of UnionTown Drilling Inc. on a share exchange basis upon conclusion of NX Petroleum Inc listing on a European exchange.
NX Petroleum Inc. is in the final stages of working with a European listed company to become listed and has a letter of intent with a European Listed Oil Company. In this way, UnionTown Energy Inc. will own approximately 48% of a publicly traded company in Europe, with its shareholders retaining their shares in the USA- based entity, UnionTown Energy Inc.
UnionTown Energy Inc., will retain a 10% working interest in the New Miami Property. It is then the intent to list UnionTown Energy Inc. on the Canadian National Stock Exchange http://www.cnsx.ca/ or a similar exchange with a goal of listing on the NYSE Euronext (NYX) or a similar USA Exchange. Efforts on this front will begin immediately. UnionTown Energy Inc. will be working with its accountants and auditors to become fully reporting and compliant again.
Michael Butterfield has resigned from UnionTown Energy Inc. and has been appointed and accepted the position of Chief Executive Officer at NX Petroleum Inc. to ensure continuity and a smooth transition for the continued development of the Oil assets.
Patrick Smyth, VP of Finance, has been appointed and accepted the position of Chief Executive Officer and Director at UnionTown Energy Inc.
John Karlsson has been has been appointed and accepted the position of General Counsel and Director at UnionTown Energy Inc.
New Miami Operations
As reported on April 10th in the Fairfield Sun Times: “On Saturday afternoon, UnionTown’s New Miami well was observed in production” with some product now being delivered from #42-20H to the refinery. See the entire article here at http://tinyurl.com/utogarticle
The Company encountered higher than expected levels of water from its first well, #42-20H, and significant changes have been ongoing since January. Well #42-20H now has a Halliburton “Super Pump” (patented pump GP4-17S0) on it, which specifically addresses the issues that caused some problems during completion as we are now able to handle high volumes of liquids and gas.
The second well that is being drilled at New Miami has hit the horizontal phase of the drilling, and the Company’s operators and consultants reported that the pay zone is much greater than that in the first New Miami well pay zone.