U.S. Oil & Gas Plc.
(“US Oil” or the “Company”)
Summary of Chairman’s AGM statement and remarks
U.S. Oil & Gas Plc, (“USOIL” or the “Company”), the oil and gas exploration company with assets in Nevada, provides the following summary of the Chairman’s Statement and remarks delivered at the AGM of 20 November 2018. Please note that 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.
The oil that flowed to the surface from the recently drilled Eblana-3 well tests at API 34.5. This oil is believed to come from zone 5 and possibly zone 4. Heavier oil was encountered from zone 3. Zone 5 estimated pay is 258ft.
Subject to regulatory permissions and funding, the well will be subject to an hydraulic fracturing (fracking) operation of short duration, using limited water and no contentious chemicals. The purpose is to increase the permeability of the targeted formations, and clear volcanic ash and tuff believed to be impeding flow. Up to four zones will be fracked in operations expected to last four days in total. The aim is to establish a commercial flow of hydrocarbons. Meanwhile, pumping in an attempt to clear ash and tuff will continue, weather permitting. How long regulatory permissions will take to acquire is not under the Company’s control, but technical specifications are currently being drawn up in consultation with reservoir specialists and will be submitted to the relevant authorities without delay. It is important to note that although the Company is confident its planned fracking operation will succeed in producing a commercial well, success cannot be guaranteed.
The fracking operation will require additional, modest funding of approximately $300,000, and the Company will be seeking to raise those funds in the near future. Currently, the Company has approx. $1.2 million cash in hand.
It remains the Company’s objective to list on a recognised stock exchange, but establishing the commerciality of the Eblana-3 well is currently the priority.
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.usoilandgas.us