June 29, 2018
U.S. Oil & Gas Plc.
(“U.S. Oil” or the “Company”)
Operations update and lease acquisitions
- Eblana-3 test preparations underway
- Additional lease acreage acquired
U.S. Oil & Gas plc, the oil and gas exploration company with its main asset in Nevada, USA, is pleased to announce that preparations for preliminary testing of the Eblana-3 well are underway. The rig, supplied by C&J well services, is onsite and operations are ongoing.
Recent log analysis delineated potential hydrocarbon pay in multiple intervals of which it was planned to perforate and flow test a selected number. Testing was expected to require induction of flow by sustained swabbing after perforation, given the typical characteristics of Nevada hydrocarbon reservoirs, however several mechanical problems in perforation equipment have significantly slowed progress and require significant change to the planned timetable.
The intention now is to use the remaining scheduled days to complete the planned perforation programme while the specialist personnel and equipment are on site. However, given constraints on rig and personnel availability, this will leave insufficient time for production test swabbing. The intention, therefore, is to pause operations and carry out the full testing programme after the rig has been rescheduled.
Shareholders will be informed of planned recommencement when the availability of rig and associated equipment has been confirmed.
The Eblana-3 appraisal well is located on Lease 87414 in Hot Creek Valley, Nevada. US Oil owns a 100% interest in the lease through its wholly-owned subsidiary Major Oil Intl. LLC.
Additional lease acreage
The Company is pleased to announce it has acquired additional lease acreage in Hot Creek Valley. Through its wholly owned subsidiary, Major Oil International LLC, U.S. Oil has leased from the Nevada Bureau of Land Management eleven new lots, totaling 19,639 acres and contiguous with existing acreage. The applicable fees have been paid and receipted. The company’s total acreage position in Hot Creek Valley is now 41,860 acres (approx. 169 sq. km.).
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 ANNOUNCEMENT
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