10 March, 2016 – U.S. Oil & Gas Plc.- Consolidated Audited Annual Results for Period Ended 31 July, 2015

U.S. Oil & Gas Plc.

(“U.S. Oil” or the “Company”)

Consolidated Audited Annual Results for Period Ended 31 July, 2015

The Company is pleased to report its consolidated annual results for the year period ended 31 July 2015.

Financial Highlights

– Administration expenses $502,377 (2014: $492,025). The decrease in expenditure was primarily due to reduced exploration activity over the period and reduced administration costs.

– Total comprehensive loss $501,958 (2014: $491,591); and cash and cash equivalents $379,867 (2014: $519,240). As a result of VAT refunds the cash and cash equivalents on hand as at 31 July 2015 amount to just over $359K. The Company is debt-free.

Review of the period ended 31 July 2015

Suspension from GXG Markets, restoration of trading, closure of GXG

GXG Markets suspended the trading of the Company’s securities with effect December 16, 2014, citing ‘the protection of investors.’ The suspension was later shown by an Independent Due Diligence Report requested by GXG to have been entirely unjustified, and the Company’s shares were readmitted to trading on 26 May 2015. However, for a six month period the suspension precluded any fund-raising activities whatsoever and negatively affected partnership discussions and other essential corporate activities.

On 18 August 2015, GXG Markets ceased operations, leaving US Oil without a trading platform. The Company is now seeking a listing on a fully recognised market and has made excellent progress towards satisfying various admission requirements.

Partnership Discussions

The first months of the period saw intense discussions continue with a prospective industry partner, however the pace of progress in this endeavour slowed considerably as the oil price crisis developed in late 2014. The Company’s suspension of trading from the GXG Market further retarded the negotiations.

In the three months to November 2014, oil prices declined 30% and since June 2014 oil prices have more than halved. This followed on from a period of intensive cost-cutting and consolidation in the industry throughout 2014. Currently, risk aversion in the industry is extremely high, slowing progress towards the industry partnership the Company seeks for a large-scale exploration programme. However, discussions with potential partners are continuing, and in the meantime the Company has made significant advances in its operational and corporate agendas.

The Board is confident that the considerable progress made in recent months will allow US Oil to move forward rapidly on both corporate and exploration fronts irrespective of broader industry conditions.

Share placing

On May 29 2015, the Company announced it had placed 1,111,112 New Ordinary Shares (the “Placing Shares”) at a price of STG 0.27 per share (the “Placing Price”) to raise gross proceeds of circa $414,000. The purpose of the placing was to strengthen the Company’s working capital base, and the success of that placing is a tribute to the high level of confidence placed in the Company by investors.

Retirement of Director

On June 19 2015. Mr. Paul O’Callaghan retired as a Director of the Company. Paul joined the company in 2012 and made an outstanding contribution to the work of the Board. On behalf of the Board and shareholders, I want to thank him for his insight and unwavering support for the Company and wish him well in his retirement. Paul has agreed to continue working with the Company on a consultancy basis, and the Board looks forward to continuing to benefit from his experience.

Appointment of Independent Non-Executive Director

On 21 October 2015 Mr. Brian McBeth was appointed to the Board as an Independent Non-executive Director. Dr. McBeth has held numerous posts in the resources sector. He was the Senior Oil Analyst for Cominvest, the asset management arm of Commerzbank AG, as well as consultant to The Oxford Institute for Energy Studies, The Economist Intelligence Unit, and the London School of Economics. Dr. MacBeth is a widely respected industry professional, and I am confident the Company will benefit enormously from his experience and perspective.

Operational Highlights

The Company has made significant progress in preparation for further drilling. Additional 2-D seismic data was acquired and analysed, and a comprehensive modelling study of the reservoir associated with the Eblana #1 drill was undertaken to compliment the completed basin modelling study. The quality of the data was excellent and the technical team did an outstanding job producing a detailed and highly informative picture of the underlying structure by integrating this and all previously collected data. The Company is now in an excellent position from a technical point of view to initiate further drilling.

The Board believes that the status of the Hot Creek Valley oil play as a conventional play, with concomitant low costs of recovery, remains a potentially valuable asset even in the prevailing oil price environment. In addition, the cost of drilling and services and fallen dramatically, increasing the viability of further exploration. In Hot Creek Valley, we have the prospect that even limited further drilling could potentially raise 19.2 mmbbl Contingent Resources to Reserves. Such a development would potentially increase the Company’s asset value by orders of magnitude.


The period of the GXG suspension was an extremely difficult period for the Board and for shareholders. An enormous burden of additional work was imposed on Company personnel during this time. However, the integrity of the Company, its officers and its statements was fully endorsed by the Due Diligence process. The Board and shareholders should derive considerable satisfaction from that outcome.

In spite of the GXG issue and current industry difficulties, the Company has made significant and exciting operational progress. Our understanding of the reservoir targeted by Eblana #1 has been substantially advanced, and we are very encouraged about the opportunity in Hot Creek Valley. We are determined to advance our exploration agenda significantly in the coming months.

Chairman of the Board
Consolidated Statement of Comprehensive Income
for the period ended 31 July 2015
1 Oct ’14 to 1 Oct ’13 to
31 Jul ’15 30 Sep ’14
Continuing Operations $ $
Administrative expenses (502,377) (492,025)
Operating loss (502,377) (492,025)
Finance Income 419 434
Loss for the period before taxation
Income tax expense – –

Loss for the period from continuing operations
Other Comprehensive Income – –
Total Comprehensive Loss for the period (501,958) (491,591)

Loss attributable to:
Equity holders of the Company (501,958) (491,591)

Total Comprehensive Loss attributable to:

Equity holders of the Company (501,958) (491,591)
Consolidated Statement of Financial Position
as at 31 July 2015
31 Jul ’15 30 Sep ’14
$ $
Non-Current Assets
Intangible Assets 5,173,729 5,173,729
Total Non-Current Assets 5,173,729 5,173,729

Current Assets
Trade and other receivables 87,826 74,861
Cash and cash equivalents 379,867 519,240
Total Current Assets 467,693 594,101
Total Assets 5,641,422 5,767,830

Capital and Reserves
Share capital presented as equity 5,715 5,568
Share premium 10,247,441 9,742,553
Treasury shares 102 102
Share based payments reserve 168,305 168,305
Retained Loss (4,936,871) (4,434,913)
Attributable to owners of the Company 5,484,692 5,481,615
Total Equity 5,484,692 5,481,615

Current Liabilities
Trade and other payables 156,730 286,215
Total Current Liabilities 156,730 286,215
Total Liabilities 156,730 286,215

Total Equity and Liabilities


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
Alexander David Securities Ltd – Corporate Finance Adviser
David Scott +44 (0) 20 7448 9820
James Dewhurst +44 (0) 20 7448 9820
Email: [email protected]

Definitions: The terms ‘Reserves’ and ‘Contingent Resources’ are as defined in the ‘Petroleum Resources Management System’ of the Society of Petroleum Engineers.

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.usoil.us