April 18, 2018
U.S. Oil & Gas Plc.
(“US Oil” or the “Company”)
- Successful spudding of Eblana-3 well in Hot Creek Valley Nevada
U.S. Oil & Gas Plc, (“USOIL” or the “Company”), the oil and gas exploration company with assets in Nevada, is pleased to announce that appraisal well Eblana-3 spudded in Hot Creek Valley, Nevada , at 13:30 PST on April 17th 2018, with drilling now underway. The well is designed to investigate reservoir and hydrocarbon characteristics and to prove up a portion of the Company’s Contingent Resources to Proved Reserves.
The well is situated updip of, and a 1,200 metre step-out from, the Company’s discovery well Eblana-1, and is on the same structure. The well is located on Lease 87414, which is held and operated by US Oil’s wholly owned subsidiary Major Oil Intl LLC. Major Oil holds approximately 88sq kms of contiguous leases in Hot Creek Valley.
Eblana-3 is being drilled by Capstar Drilling’s Rig 330 and is a vertical well. Capstar Drilling is an Oil States International company. Eblana-3 drilling and logging operations will run 24 hours. Drilling duration for Eblana-3 will be determined as operations proceed, as will final target depth. A minimum depth of 7,000ft is planned, although drilling may continue to the Palaeozoics. Total operations with the Capstar 330 rig are expected to be up to 45 days.
Once Eblana-3 drilling is complete, well testing will be carried out. In the event of successful testing, the well may be completed and further testing performed. The Company will announce test results after the end of drilling, logging and preliminary testing operations.
US Oil’s view at this time is that the drilling of a second well, Eblana-6, will be decided upon in the light of results from Eblana-3 and the accrued costs at each stage. The Eblana-6 pad, surface conductor pipe, access ways and other services are already in place. The rig transport distance from the Eblana-3 pad to Eblana-6 is 1,400 metres.
CEO Brian McDonnell said:
“We are pleased to have commenced drilling operations at Eblana-3. On behalf of myself and the Board, I would like to thank our operations team and our drilling contractor Capstar Drilling for their efforts in achieving this milestone with exemplary efficiency. As with any well in a new basin, the drill carries risk, but we believe that our intensive programme of data collection and modeling has reduced that risk as far as is possible. We look forward to updating shareholders on drilling results in due course.”
The statements in this communication reflect the current thinking of the Board and the Company’s present plans. The Company reserves the right to alter plans in the light of developing knowledge and circumstances. Shareholders’ attention is drawn to the note below concerning Forward-looking Statements.
This press release contains certain “forward-looking statements” and “forward-looking information”. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to: business plans and strategies of US Oil and Gas; operating or technical difficulties in connection with drilling or development activities; availability and costs associated with inputs and labour; drilling and exploration costs; the speculative nature of oil exploration and development; diminishing quantities or quality of reserves; synergies and financial impact of completed acquisitions; the benefits of the acquisitions and the development potential of properties of US Oil and Gas; the future price of oil; supply and demand for oil; the estimation of reserves; the realization of reserve estimates; costs of production and projections of costs; success of exploration activities; capital expenditure programs and the timing and method of financing thereof; the ability of US Oil and Gas to achieve drilling success consistent with management’s expectations; net present values of future net revenues from reserves; expected levels of royalty rates, operating costs, general and administrative costs, costs of services and other costs and expenses; expectations regarding the ability to raise capital and to add to reserves through acquisitions, assessments of the value of acquisitions and exploration and development programs; geological, technical, drilling and processing problems; treatment under governmental regulatory regimes and tax laws.
All statements other than statements of historical fact are forward-looking statements
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS
Neither this announcement nor the information contained herein constitutes an offer or solicitation by U.S. Oil and Gas Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.
For further information contact:
Brian McDonnell, Chief Executive Officer +353 (1) 631 9022
About U.S. Oil & Gas:
U.S. Oil & Gas plc is an oil and gas exploration company with a strategy to identify and acquire oil and gas assets in the early phase of the upstream life-cycle and mature them. The Company’s
main asset is in Nye County, Nevada where it holds the entire share capital of US-based company, Major Oil International LLC (“Major Oil”). Major Oil has acquired rights to exploration and development acreage in Hot Creek Valley, Nye County, adjacent to the oil and gas rich Railroad Valley area of Nevada, both of which are part of the Sevier Thrust of central Nevada and western Utah, USA.
For further information please refer to our website at: www.usoil.us