Investors

The Investment Case

Eblana #1 night operations

Eblana #1 night operations

The competitive advantages offered by the Hot Creek Valley prospect are:

  • The potentially low extraction costs of the conventional resource at approximately $5 / bbl to the refinery, as compared to $25-50 / bbl for unconventional wells in a shale play.
  • That additional drilling could potentially raise Contingent Resources to Reserves and by so doing increase the asset value significantly.
  • That the substantial area of the play at 88sq km offers wide scope for large-scale development.
  • That the stable legal and political environment offered by United States compares favourably with other regions of the world.
  • US Oil & Gas has, compared to oil explorers with similar achievements, a low number of shares in issue.
  • US Oil’s lease area is close to the highly productive oil field at Railroad Valley (35 miles) and is believed to be geologically comparable in exploration terms.
  • The unit cost of extracting oil in Nevada  is amongst the lowest anywhere.  The Hot Creek Valley lease area is close to a highway and two refineries.   As a result, the viability of the field is minimally sensitive to the oil price.