United Energy Announces Major Acquisition Update

Rhea-AI Summary

United Energy (OTCMKTS:UNRG) has signed a purchase agreement for a 140-mile natural gas pipeline in Wagoner County, Oklahoma, previously owned by Red Fork Energy. The pipeline includes 140+ miles of transmission lines with a capacity of up to 20,000 MCFGD and encompasses over 5,000 acres of leasehold and 89 wells, providing significant Woodford Shale development opportunities. The company anticipates closing in October, pending due diligence. UNRG aims to reactivate the Wagoner Pipeline, forecasting an increase of 2,000+ MCFGD in production.

Positive

• Acquisition of a substantial 140-mile pipeline improves operational capacity and potential revenue.
• Forecast of 2,500+ MCFGD production in Q4, signaling strong operational performance.
• Introduction of a proprietary well-pumping solution to reduce operating costs significantly.

Negative

• None.

PLANO, Texas--(BUSINESS WIRE)-- United Energy (OTCMKTS:UNRG):

United Energy announces it has signed a purchase agreement for a 140-mile natural gas pipeline in Wagoner County, Oklahoma, formerly owned by Red Fork Energy. This asset has 140+ miles of 3” to 16” transmission lines, including a 12” steel pipeline – capacity up to 20,000 MCFGD and comprises 5,000+ acres leasehold, and 89 company-owned wells with substantial Woodford Shale development opportunities. Closing is expected in October pending final due diligence.

“Natural Gas midstream assets are true gems in the current environment. Acquisition of the Wagoner Pipeline also opens numerous opportunities for stranded gas that hasn’t been able to capitalize on current commodity prices.” Brian Guinn, CEO of United Energy Corporation

August 2021 UNRG announced the acquisition of a strategic asset combination in the Cherokee Basin, located in Northeastern Oklahoma and Southeastern Kansas. The Company purchased Entransco Energy, LLC, serving as the Company’s licensed Operator in Oklahoma and Kansas, adding 250+ Coalbed Methane Gas (CBM) wells, 32,000 acres, 118 miles of pipeline and related oil and gas assets to its portfolio.

In addition, UNRG acquired 80 wells and 10,000 acres of CBM-producing wells from Montclair Energy – a project formerly known as ROCCS, the Rogers County Coal Seam Project.

The Entransco acquisition also included 49% ownership in an additional 200,000 acres of non-operated oil and gas leases, 2,200+ wells and 1,000+ miles of natural gas pipelines formerly owned by Constellation Energy Partners and Newfield Exploration.

UNRG forecasts 2,500+ MCFGD within Q4 and another 2,000+ MCFGD with the reactivation of the Wagoner Pipeline.

UNRG will soon be rolling out a proprietary well-pumping solution for the production of CBM wells. This innovative pump dramatically reduces operating costs of water-producing wells, eliminating the surface pump jack and many high-maintenance pumping expenses that have burdened previous operators.

“We’re on a mission. We’ll be one of the top 3 largest operators in the Cherokee Basin before year-end.” Brian Guinn

Forward-Thinking Disclaimer

https://twitter.com/UNRGCorp

View source version on businesswire.com: https://www.businesswire.com/news/home/20211005005331/en/

Media Contact:

Kimberly Stillwagon

uecorpinfo@gmail.com

214-901-5453

nvestor Contact:

Brian Guinn

info@unrgcorp.com

469-209-5829

Source: United Energy

FAQ

What did United Energy announce regarding the Wagoner Pipeline?

United Energy announced the acquisition of a 140-mile natural gas pipeline in Wagoner County, Oklahoma.

What is the expected production capacity of the newly acquired pipeline?

The Wagoner Pipeline has a capacity of up to 20,000 MCFGD.

When is the closing date for the pipeline acquisition by UNRG?

The closing of the pipeline acquisition is expected in October, pending final due diligence.

What are the implications of the acquisition for UNRG's production levels?

UNRG forecasts an increase of over 2,000 MCFGD with the reactivation of the Wagoner Pipeline.

What strategic importance does the Wagoner Pipeline hold for United Energy?

The acquisition enhances UNRG's operational capacity and opens up opportunities for stranded gas in the current market.