The Investment Case

      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.
• Additional drilling could allow for estimated Resources to be designated Reserves, increasing the asset value significantly.
• The substantial lease area held by the Company offers wide scope for large-scale development.
• 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 oil field at Railroad Valley (35 miles) and is believed to be a geological analogue.
• 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.