U.S. Oil and Gas plc
(“USOIL” or “the “Company”)
Geochemical Results Eblana Sect 1 and 3 – Structures Identified Similar to Producing Wells in Region
Further analysis of the results of geochemical tests from USOIL’s Eblana Phase 1, Sections 1 (West) and 3 (East) survey areas confirms the presence of oil and indicates structures that are analogous to the nearby oilfields in Trap Springs, Railroad Valley, 20 miles to the east. This result confirms the Company’s choice of Section 3 (East) as its second well-drilling target. Detailed analysis of data from Section 1 (West) shows that a massive fault (SW/NE) lies through Section 1 (West) and Section 3 (East).
Samples have now been analysed for Magnetic Susceptibility (MS), High Resolution Soil Spectral Analysis (HRSSA), and hydrocarbon content. by UV-Vis Spectroscopy, Iodine, and Soil Electrical Conductivity (umhos). These analysis methods are independent of one another.
Section 3 (East) yields a consistent halo anomaly towards the southeast of the survey area. Halos, circular or semi-circular features, are anomalous hydrocarbon seepage phenomena detected at the surface, representing the edges of the hydrocarbon reservoir at depth. Such features help pinpoint the optimal position for drilling. Compositional information for Section 1 (West) was extracted from the hydrocarbon data using ratios of the spectral wavelengths (240nm / 340nm) over the entire absorption range. This analysis compares low molecular weight straight chain alkanes to high molecular weight aromatic rings. Results show a build up of gas along the area previously discussed as being a diagonal linear anomaly. Section 1 (West) exhibits a diagonal linear anomaly that is indicative of a massive fault, a geological barrier, or a geochemical barrier.
Surface structure interpretation shows that the lease area appears to be part of a major fault, with the orientation of en echelon faults west of Hot Creek striking approximately East – West or Northeast – Southwest. Faults east of Hot Creek strike approximately North – South. The major finds in Railroad Valley are associated with similarly oriented faults, and when these locations are analysed by age they exhibit a strong relationship to USOIL’s Section 3 (East). The location of the halo and
associated anomaly coincides closely with the older faults in the survey area.
Chief Executive Officer Brian McDonnell says, ‘Our analysis shows Section 3 (East) exhibits an anomalous halo coincident with existing faults and fractures similar to those associated with prolific production in Railroad Valley, an extremely encouraging result. We will now look closely at what is happening in Section 1 (West) and the tremendous fault running diagonally across the survey area.’
The geochemical results for Section 3 (East) will now be integrated with the geophysical, geochemical and passive seismic information already collected, to complete the stratigraphic picture for the second of USOIL’s well-drilling targets.
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT.
For further information contact:
US 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
Jonathan Charles +44 (0)20 7429 6611
firstname.lastname@example.org +44 (0)7791 892509
Notes to Editors
US Oil and Gas plc is a PLUS (Ticker: USOP) listed 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 into marketable opportunities for the medium- and large-sized oil companies. The Company’s main asset is in Nye County, Nevada where it holds the entire share capital of the US-based company Major Oil International LLC. Major Oil has acquired, and intends to acquire, rights to exploration and development acreage in two high potential resource areas 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.
The IPDS Passive Seismic Survey results reported on 26th February 2010 showed high DHI (Direct Hydrocarbons Indicator) readings for Section 2 (North), with DHI of 0.96. This section was identified as the likely first well drilling target. DHI readings for Section 3 (East) of up to 0.59 DHI, led USOIL to nominate this section as its likely second well-drilling target. Positive geochemical results for Section 2 (North) have already been reported. Seepage of hydrocarbons from the subsurface at Section 3 (East) is now also confirmed, correlating highly with IPDS and gravity/magnetic survey results.
For further information please refer to our website at: www.usoil.us
U.S. OIL AND GAS PLC
(END) Dow Jones Newswires
July 21, 2010 02:00 ET (06:00 GMT)
Archive ref: SN20100721000629.nml