UnionTown Energy is nearly completing the definitive agreement to buy a 1,480-acre oil and gas property in the Madison structure in Montana.
The location of 1,480-acre property is in a productive oil and gas region producing over 300 million barrels of oil and 500 billion cubic feet of natural gas within a 50-mile radius. The only oil producing field, which is just 4 miles from the property, has given beyond 30 million barrels of oil.
UnionTown Energy will bring to quick production from the high potential property at low cost and low risk. Formerly drilled two wells have concluded that the property is present at the top of a superficial oil buildup. The assessed drilling reports are found to be conventional and estimation reveals that the property has 2.4 million retrievable barrels of oil.
UnionTown has considered that the property can hold 17 shallow horizontal oil well spots.
The conditions of acquisition have been decided among the leaseholders. Now the company is in the final phase of discussions to conclude the Agreement. UnionTown has announced this as the second major oil property acquisition in first quarter of 2011.
Additionally, UnionTown will also finalize the acquisition of formerly proclaimed Musselshell Property.
Source: http://www.uniontownenergy.com/