(“US Oil” or “the Company”)
Announcement of Drilling Contractor
U.S. Oil and Gas (PLUS: USOP), with exploration assets in Nevada, USA, announces the following operational
update:
US Oil & Gas plc (“US Oil” or the “Company”) is pleased to announce that Major Oil International LLC, its wholly owned subsidiary, has agreed heads of terms with Nabors Industries Inc. to drill the Eblana #1 well plus at least one further well on the Company’s 100% owned Hot Creek Valley, Nevada prospect.
Nabors Industries is the largest drilling contractor in the world, conducting oil, gas and geothermal drilling operations in the U.S. Lower 48 states, Alaska, Canada and internationally in more than 30 additional countries (www.nabors.com).
The contracted rig, No. 475 is a hydraulic Diesel Electric 1500 HP Land Rig with 710,000 lbs hoisting capacity on Low-Low with 12 lines driven by two DC motors. The targeted drilling depth is approximately 8,000 feet and the estimated completion time for the first well is approximately 25 days.
During discussions with the BLM concerning the APD, all technical requirements were reviewed and the supply of additional information from the relevant drilling contractor was agreed. As the drilling contractor has been selected, this information has now been supplied to the BLM, which will enable them to complete processing of the APD. Drilling is subject to the final award of the Permit to Drill by US federal authorities, therefore an announcement on mobilization and spudding-in date will be made in a separate press release.
Mr. Brian McDonnell, CEO of US Oil & Gas, commented, “With this drilling agreement, the Company has come an important step closer to appraising the first of our highly prospective targets in Hot Creek Valley. Together with our industry-leading drilling partner, we keenly look forward to the next phase of our exploration programme.”
Ron Cleveland (Nabors Drilling, USA) said, “We look forward to working with Major Oil in Hot Creek Valley on this their first drilling programme, bringing to bear our extensive experience of operations in the Great Basin.”
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
For further information contact:
U.S. Oil and Gas plc
Brian McDonnell, Chief Executive Officer +353 (0) 872383419
Lionsgate Communications – Financial Public Relations
Natalia Egorova +44 (0)7500 828771
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 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.
About Nabors Industries Ltd:
The Nabors companies own and operate approximately 491 land drilling rigs and approximately 749 land workover and well-servicing rigs in North America. Nabors’ actively marketed offshore fleet consists of 39 platform rigs, 12 jack up units and 4 barge rigs in the United States and multiple international markets. In addition, Nabors is one of the largest providers of hydraulic fracturing, cementing, nitrogen and acid pressure pumping services with over 780,000 hydraulic horsepower currently in service. Nabors also manufactures top drives and drilling instrumentation systems and provides comprehensive oilfield hauling, engineering, civil construction, logistics, and facilities maintenance and project management services. Nabors participates in most of the significant oil and gas markets in the world.
For further information please refer to our website at: www.usoil.us.
U.S. OIL AND GAS PLC
(END) Dow Jones Newswires
February 27, 2012 03:00 ET (08:00 GMT)
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