U.S. Oil and Gas Plc.
(“US Oil” or the “Company”)
FINAL GEOCHEMICAL RESULTS CONFIRM LARGE HYDROCARBON SURFACE ANOMALIES
U.S. Oil and Gas plc (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada, USA, is pleased to announce final geochemical survey results for its entire lease area, based on a report from Fausanaugh et al.
* Five anomalies, larger than previously reported, confirm earlier results and divide into northern and southern groups, with the northern group analogous to trends found in oil-producing Railroad Valley.
* Lighter gravity hydrocarbons (light oil, condensate, gas) are potentially located to the mid-north and mid-northwest, with increasing hydrocarbon fluids gravity to the south (oil).
* Current estimated anomaly size is up to 400 acres per anomaly, that is on average 30% of the lease area shows signs of hydrocarbon alteration.
Samples were analysed for hydrocarbon content using seven variables including: Magnetic Susceptibility (“MS”), High Resolution Soil Spectral Analysis (“HRSSA”), UV-Vis Spectroscopy, Iodine, and Soil Electrical Conductivity (“UMHOS”). These analysis methods are independent of one another and are used for the detection of hydrocarbon microseepage phenomena related to potential oil and gas reservoirs at depth.
Analysis of the results confirms potentially five defined hydrocarbon reservoirs. These are larger than previously reported, and some subsume more than one previously reported anomaly.
The seven variables measured consistently yield almost similar anomalies, supported by local and regional faulting. The five alteration anomalies have similar orientation to that of the regional grain of the survey area. Two of the anomalies are analogous to trends found in the adjacent oil-producing Railroad Valley. Two others are associated with much higher MS measurements than the rest and are coincident with a significant fracture network and near-surface faults.
Final anomaly sizes, extracted from the latest data, yield a current estimated size of up to 400 acres per anomaly, indicating that, on average, 30% of the lease area shows signs of hydrocarbon alteration.
Fausanaugh et al. also reported that a geochemical concentration gradient of high to low has been established on the lease area. Lighter gravity hydrocarbons (light oil, condensate, gas) are located to the mid-north and mid-northwest, with increasing hydrocarbon gravity to the south (oil). All the anomalies are associated with geochemical halo patterns.
US Oil’s Chief Executive Officer, Brian McDonnell, said: “These are excellent results, confirming our expectations and doubling the size of our geochemical hydrocarbon footprint. This data, integrated with the 3-D Infrasonic Passive Differential Spectroscopy (“IPDS”) results, due imminently, will be invaluable in giving us the fullest possible picture before drilling begins.”
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
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For further information contact:
U.S. Oil and Gas plc
Brian McDonnell, Chief Executive Officer +353 (0) 872383419
SVS Securities plc – PLUS Corporate Adviser
Peter Ward / Alexander Brearley +44 (0)20 7638 5600
SVS Securities plc – Broker
Ian Callaway / Alex Mattey +44 (0)20 7638 5600
Notes to Editors:
U.S. Oil and Gas plc is a PLUS-quoted (Ticker: USOP) 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. US Oil has completed extensive surveys of its Hot Creek lease area, generating 18 datasets using the following survey methods: Gravity and Magnetic Resonance, Geochemical, 2-D Seismic, Landsat remote sensing, Geophysical studies, Conodont Alteration Index (CAI), Pyrolysis (TOC), Vitronite Reflectance-Visual Kerogen (TAI), 2-D Passive Seismic (IPDS) and 3-D Passive Seismic.
The Company has funding in place for a three-well drilling campaign intended to begin shortly.
For further information please refer to our website at: www.usoil.us
U.S. OIL AND GAS PLC
(END) Dow Jones NewswiresAugust 17, 2011 06:59 ET (10:59 GMT)