US Natural Gas Corp (OTC Bulletin Board: UNGS), an energy exploration company with operations in the Appalachian Basin, is pleased to announce that through its two subsidiaries, the Company is preparing to increase its oil production three fold over the next two quarters.
US Natural Gas Corp WV will initiate re-entry and completion procedures on four oil wells acquired in the Wilon Resources, Inc. transaction. The Company intends to have new electrical logs completed on each of the wells to determine if any are candidates for treatment to enhance production. Work is anticipated to begin during the current week on the B Davis #719 well. Historical production for the wells as a group averaged four BOD.
US Natural Gas Corp KY recently acquired an additional lease with a previously producing well in Hart County, KY. The Company plans to place this well back into production simultaneously as it furthers the development of its recently announced acquisition of 20 wellbores in Hart County, KY. The Company is currently in discussions to acquire six wells in Metcalfe County, Kentucky which are producing on average a combined six to eight BOD. In addition, the Company is identifying two wells to stimulate via a foam acid treatment similar to the recently announced procedure completed on the Hammonds #1 well in an attempt to increase production.
"We are excited to increase our focus on our oil producing properties in both Kentucky and West Virginia. We have been able to selectively increase our leasehold base over the past two years giving us this opportunity," stated Wayne Anderson, President of US Natural Gas Corp. "As we execute our plan over the course of the next two quarters by placing targeted wells into production, treating select wells in an effort to stimulate production, and through select acquisitions of producing properties, we project the Company's production should reach a base level of 500-600 barrels per month."