U.S. Oil & Gas Plc.
(“US Oil” or the “Company”)
U.S. Oil & Gas Plc, (“USOIL” or the “Company”), the oil and gas exploration company with assets in Nevada, makes the following announcement:
Three applications to drill wells in Hot Creek Valley, submitted by the Company to federal authorities, are still in process. The required bonds have been lodged for two wells. After permits are awarded, the Company will drill as soon as the availability of service and equipment vendors allows. Preparatory planning is advanced, meaning contracts and schedules can be finalised without undue delay.
The planned wells target updip of US Oil’s discovery well Eblana-1. Two of the planned wells (Eblana-1a and Eblana-3) target updip Tertiary zones with the option of drilling deeper to the Paleozoics, also believed prospective. Eblana-3 and Eblana-6 are vertical wells. Eblana-1a is deviated and would be drilled from the existing Eblana-1 well pad. The Company’s view at this time is that it will drill Eblana-3 first, deciding on subsequent operations in the light of results.
The required cultural survey has been successfully completed.
Groundworks and vendors:
Groundworks, including road improvements, drill pad construction and access ways, will commence as soon as practicable after permits are awarded. On the granting of permits, contracts will be finalised and scheduling agreed with a drilling contractor and other vendors, including rig transportation, cement and mud companies. Further details will be announced as soon as a spud date is fixed.
Soil-Gas and Magnetics surveys
In order to extend the Company’s understanding of possible hydrocarbon-bearing structures in Hot Creek Valley, the 2016 and 2017 Soil-Gas surveys were further extended. In the earlier surveys, 184 sites were sampled, the majority in the areas of Eblana-1 and the proposed Eblana-3 and Eblana-6 well sites. In recent weeks an additional 125 sites have been sampled covering the entire concession area. The expanded survey will evaluate previously unexplored areas and will shed further light on the potential of areas earlier showing promise. Analysis and the integration of the data into the geological models is currently underway. Preliminary results indicate a high potential for hydrocarbons throughout the Hot Creek Valley concession and confirms the Company’s view that its leases cover a major oil system.
Modelling and Data Integration
The company is currently carrying out further geological modelling studies based on all data collected to date, focussing on the wider concession area. The purpose is to inform a comprehensive exploration plan aimed at identifying all significant potential hydrocarbon-bearing structures on its Hot Creek Valley leases. This planning underpins a strategy aimed at developing the necessary corporate, technical and resource capabilities to fully explore and develop the asset.
Shareholders will be informed by Regulatory News Service of a spud date and mobilisation once all arrangements have been finalised and vendors and service providers coordinated.
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 & 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 & 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 & 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