December 07, 2020
U.S. Oil & Gas Plc.
(“US Oil” or the “Company”)
Results of Drilling
U.S. Oil & Gas Plc, (“USOIL” or the “Company”), the oil and gas exploration company with assets in Nevada, announces that the Eblana-9 well in Hot Creek Valley, Nevada did not encounter commercial hydrocarbons and is being plugged and abandoned.
The Eblana-9 well was drilled to a total depth of 5,250 ft., reaching target depth at 17.00 local time (PT) on 05 December 2020. The well penetrated three potential zones targeted as objectives. There was evidence of hydrocarbon migration above the cap rock in the microfractures. However, there was no evidence of migration in the targeted zones.
The Eblana-9 well was drilled safely and efficiently and within budget. Net expenditure on the well is expected to be approximately $670,000. Operations were conducted by Major Oil Intl., a wholly owned subsidiary of US Oil and Gas Plc.
Brian McDonnell, CEO of US Oil and Gas said,
“We are extremely disappointed with the outcome of the Eblana-9 drill. However, we still believe there is a working oil system on our lease acreage in Hot Creek Valley. Following the conclusion of operations, we will be closely analysing the the data collected from the well before deciding on our future direction. Amongst the options considered will be a seismic study to assess prospects in the West Play carbonates, believed to be independent of the oil system in the East.
“While this is not the hoped-for outcome, our efficient drilling and careful risk management successfully contained cost and resulted in low financial exposure. The Board and our technical team will now consider ways to take the Company forward. “
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.usoilandgas.us