U.S. Oil and Gas Plc. (“US Oil” or the “Company”) 3D Passive Seismic Results Confirm Substantial Updip Reservoir on Lease Area U.S. Oil and Gas plc (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada, USA, is pleased to announce the results of its 3-D Infrasonic Passive Differential Spectroscopy (IPDS) survey recently completed over the whole of its lease area.
A report prepared by Geodynamics Research confirms a large hydrocarbon anomaly consistent with previously reported geochemical survey results and other data sets. The anomaly covers more than 10 sq.km and shows consistently high Reservoir Hydrocarbon Indicator (RHI) readings. The hydrocarbon pool sits updip and is wholly contained within the lease area, while the source kitchen is underneath or just down-dip nearby.
US Oil has identified up to ten drilling targets over the whole lease area. Of those ten, the most promising three are superior to the best target shown by the earlier 2-D IPDS survey using the RHI scale carried out on part of the lease area and reported in an earlier RNS dated 26 February 2010.
Work continues to complete the process of estimating recoverable oil in place for the accumulation identified. These estimates will incorporate all data sets collected so far plus petrophysical evaluation of recently acquired digitized well log data from 11 wells in nearby Railroad Valley. The final analysis is currently being carried out and will form the basis of a Prospective Resources report to be completed in due course. Meanwhile, completion of administrative procedures and ground operational plans in relation to the Company’s three-well drilling programme are continuing as planned.
US Oil CEO Mr. Brian McDonnell said: “The 3-D IPDS survey results have exceeded our expectations. The new data has identified drilling targets even more promising than before, and although this demanded considerable extra time in data analysis and refining our model, we believe the result will be to minimize uncertainties and further reduce the exploration risks associated with our forthcoming drilling campaign.”
On 15 August 2011 it was announced that Geodynamics Worldwide Srl had received 98,923 ordinary shares in the capital of the Company (“Ordinary Shares”) from the Company’s treasury, in lieu of payment in relation to seismic surveying work undertaken. Geodynamics Worldwide (marketing) and GDR (technical) are two separate legal entities. US Oil’s Exploration Manager, Dr. Karim Akrawi, is currently General Director of Geodynamics Worldwide Srl. On 21 July 2011 it was announced that Dr. Akrawi had received 100,000 Ordinary Shares from the Company’s treasury, in lieu of payment.
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
—ENDS— For further information contact:
U.S. 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 [email protected]
Lionsgate Communications – Financial Public Relations Natalia Egorova +44 (0)7500 828771 [email protected]
Notes to Editors U.S. Oil and Gas plc is a PLUS-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.
US Oil has completed extensive surveys of its Hot Creek lease area, generating 18 datasets using the following survey methods: Gravity and Magnetic Resonance, Geochemical, 2-D Seismic, Landsat remotesensing, Geophysical studies, Conodont Alteration Index (CAI), Pyrolysis (TOC), Vitronite Reflectance-Visual Kerogen (TAI), 2-D Passive Seismic (IPDS) and 3-D Passive Seismic.
For further information please refer to our website at: www.usoil.us
U.S. OIL AND GAS PLC U.S. OIL AND GAS PLC (END) Dow Jones Newswires
September 06, 2011 13:16 ET (17:16 GMT)