U.S. Oil & Gas plc (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada, USA, is pleased to announce that the Nevada Bureau of Land Management has awarded a permit to drill the second exploration well, Eblana #2, on its Hot Creek Valley property. The Permit to Drill was awarded to Major Oil International LLC, a wholly owned subsidiary of U.S. Oil & Gas.
CEO Brian McDonnell said, ‘The award of the Company’s second permit is an important step forward in our programme to take the Hot Creek Valley discovery to the next stage. Preparations for additional survey activities are well underway. Our purpose remains to prove up the asset in the most efficient way possible and we believe significant progress is being made by the Company on all fronts.’
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 (0) 87 238 3419
Alexander David Securities Ltd – Corporate Finance Adviser
Fiona Kinghorn/David Scott +44 (0) 20 7448 9800
Simon Kiero-Watson +44 (0) 20 7653 1935
Alex Benger +44 (0) 20 7653 1935
ADR Broker Desk, Deutsche Bank
Simon Davies and Richard Willis
Tel: +44 (0) 20 7547-6500
Fax: +44 (0) 20 7547-9995
Tel: +1 212 250-9100
Fax: +1 732 544-6346
About Forrest Garb Associates
FGA staff who participated in the compilation of this report includes Mr. William D. “Donnie” Harris, III, P.E., Ms. Stacy M. Light, P.E., Mr. Mike Rightmire, and Mr. John E. Cooper, C.P.G. All hold degrees in geoscience or petroleum engineering.
Founded in 1988, Forrest A. Garb & Associates, Inc. (FGA) is an International Petroleum Consulting firm providing services to the upstream oil and gas industry. FGA’s expertise includes petroleum reservoir evaluation and economic analysis, as well as geological services for exploration and exploitation projects. FGA restricts it business activities to consulting services only, and does not accept contingency fees. Because the company has no hydrocarbon production and because it has no outside ownership to dictate opinions, the determinations of the firm are independent. FGA’s studies are without bias and are based on the best interpretation of all available data after processing with current methods and equipment. FGA does not own operating interests in any oil, gas, or mineral properties. The firm subscribes to a code of professional conduct, and its employees actively support their related technical and professional societies. This report is based on information compiled by professional staff members of FGA, as well as consultants providing services to FGA.
Interaction with US Oil & Gas took place in order to understand the Company’s technical approach, but the conclusions drawn are entirely those of Forrest A. Garb & Associates. FGA has consented in writing to the reference to them in this announcement and to the estimates of oil provided.
Definitions – Contingent and Prospective Resources
The (Society of Petroleum Engineers Petroleum Resource Management System (SPE-PRMS) defines contingent resources as “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies”. One of those contingencies is stated by the SPE-PRMS as “a discovered accumulation where project activities are ongoing to justify commercial development in
the foreseeable future”.
The SPE-PRMS defines prospective resources as “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations”. The SPE-PRMS further states that these have an associated chance of discovery (geologic success) and a chance of development. Prospective Resources are exploratory in nature, carrying a high risk factor.
About American Depositary Receipts (ADRs)
An ADR is a negotiable certificate that represents ownership in securities of a non U.S. company. ADRs are issued by a sponsoring U.S. bank and denominated in U.S. dollars. An ADR represents a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange.
ADRs allow foreign companies shares to be traded in a similar manner to shares in U.S. companies on the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), Nasdaq and the over-the-counter (OTC) market.
ADRs enable U.S. citizens to acquire shares in a foreign company without the need for cross border or cross currency transactions. Any dividends and capital gains are in U.S. dollars.
About U.S. Oil & Gas
U.S. Oil & Gas plc is a GXG 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.
U.S. Oil & Gas PLC.
For further information please refer to our website at: www.usoil.us