U.S. Oil & Gas Plc.
(“U.S. 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 30 April 2019. 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.
As of this date, the Company has approximately $1.4 million net cash ($1.52 million gross).
The Company has sufficient funds to frack Eblana-3, to run the Company for a year and has ring-fenced funds to cover future site clean-up requirements. Funds are currently insufficient for drilling a further well. The Company has no plans at this time to purchase additional leases.
A permit to frack the Eblana-3 well has been awarded by the Nevada Division of Minerals (NDOM). Other permitting requirements remain to be satisfied, but the Company believes the process will soon be satisfactorily concluded. The Chairman expressed his thanks to the permitting team for completing a demanding application process in a highly efficient manner. The Company’s approach throughout has been to adopt a 100% constructive and proactive attitude to environmental protection and to work closely with the authorities to achieve the highest environmental standards.
The Company developed and modelled the frack in conjuction with Halliburton. The model passed through several iterations in consultation with the authorities. The finalised plan is currently being reviewed both internally and independently, in the context of a rapidly developing model of the basin in which the Eblana-3 well is located. The review exercise is expected to be completed shortly. The Board will then consider the final views and recommendations of the technical team, giving particular weight to estimates of the frack’s relative chance of producing a commercial well and taking into account all the relevant technical and geological factors, the cost of the frack, the Company’s financial resources and their best use.
Federal leases 87414 (on which the Eblana-1 and Eblana-3 wells sit) and 87415 are set to expire on May 31 2019 if they do not produce oil in paying quantities. Since no drilling will take place before that date on Lease 87415, that lease will certainly be relinquished. Retaining lease 87414 will depend on the outcome of the Company’s decisions and actions between now and that time in relation to Eblana-3. The above-named leases account for less than 7% of the Company’s total lease area.
The Company’s rapidly developing geological model of the oil system in Hot Creek Valley indicates that significantly more prospective areas exist both to the west and the east of the two leases due to expire. Most of the oil in the valley centre is believed to be mostly migrating through the lease areas of Eblana-1 and Eblana-3 rather than being trapped in large quantities. Intensive data analysis and modelling efforts are ongoing and continue to refine the model. Planned data collection includes seismic surveys to confirm structural aspects. Current indications based on geomagnetic, geochemical and existing seismic data, as well as downhole data from Eblana-1 and Eblana-3 are viewed as highly encouraging and indicate a requirement for much shallower wells than hitherto. Drill targets are being evaluated. The Company intends to drill one or more wells and additional funding and/or farmout may be sought for those operations.
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.usoiloilandgas.us