(“U.S. Oil” or the “Company”)
Operations Update: Eblana #1
U.S. Oil & Gas plc (GXG: USOP) an oil and gas exploration company focused on Nevada, USA, is pleased to announce that the Eblana #1 exploration well currently being drilled by its wholly owned subsidiary Major Oil International LLC reached a depth of 7,474 feet on 23rd May 2012 at 22.00 hours PST.
Oil shows observed and samples collected while drilling indicate multiple potential hydrocarbon pay zones. An estimated gross section of up to one thousand feet of hydrocarbon shows (with possible gas/oil net pay zones ranging from 100 to 300 ft) has been encountered within volcanic ash conglomerates integrated with sandstone interbed zones, whilst further oil shows have been encountered in the deeper reservoir horizons currently being drilled.
Good hydrocarbon background gas with several high gas peaks (C1, C2 and C3) associated with bright yellow color florescence and streaming cuts have been recorded. At several depth intervals, laboratory retort hydrocarbon analysis of bottom-up mud circulation tests of recovered fluid samples indicated light oil, with evidence of sweet gas at the shaker.
The bottom up test completed on the open hole at 00.30 on 24th May PST saw good light gravity oil recovered at the surface. Subsequent laboratory analysis confirmed a bright yellow white fluorescence indicating the presence of live light oil.
A logging and production testing program, including the zones discovered to date and any deeper potential pay zones encountered, will be carried out when target depth is reached.
US Oil & Gas CEO Brian McDonnell said, ‘We are highly encouraged by the results of our drill thus far and look forward keenly to the next stages in our exploration process.’
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
For further information contact:
U.S. Oil & Gas plc
Brian McDonnell, Chief Executive Officer +353 (0) 872383419
Lionsgate Communications – Financial Public Relations
Jonathan Charles +44 (0)7791892509
Notes to Editors
U.S. Oil & Gas plc is a GXG 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.
U.S. 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 remote sensing, 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 & Gas PLC