US Natural Gas Corp has acquired Reynolds No. 2 oil well in the Allen Springs quadrangle of Allen County, Kentucky. The company is now mobilizing resources and readying the well for production by replacing the well head and inserting a new 2 3/8" tubing down-hole.

The current oil well comes under the Reynolds lease and was drilled in the year 1990 to a depth of approximately 450', where the oil was sourced in the Blue Laural formation. The lease also holds Reynolds 1, owned and operated by US Natural Gas Corp's subsidiary that produces on average three quarters to one barrel of oil daily. The company anticipates a combined annual production of the two wells to be 500 barrels of oil and above.

Wayne Anderson, president of US Natural Gas Corp. commented: "The addition of the Reynolds No. 2 well adds to our goal of increased daily production without excessive costs"

"We look forward to placing the No. 2 well into production and will continue to seek acquisition opportunities of producing wells on adjacent properties," he added.

Tags: US Natural Gas Corp.