U.S. Oil & Gas Plc.
(“US Oil” or the “Company”)
U.S. Oil & Gas Plc, (“USOIL” or the “Company”), the oil and gas exploration company with assets in Nevada, is pleased to make the following announcement:
Groundworks for the Company’s Eblana-9 well in Hot Creek Valley, Nevada, are now complete. The access road and pad have been constructed and most surface facilities are in place.
A Permit to Drill has now been awarded by the Nevada Division of Minerals (NDOM), and the Company, through its wholly owned subsidiary Major Oil International LLC., has signed a rig contract. The Eblana-9 well will be drilled by Capstar Drilling, a subsidiary of Oil States International, currently operating in five US states. The contracted rig is Capstar 312, a 400 HP rig rated to 7,000 ft. depth. The rig will be used for drilling to target depth and for well testing. Details of the company and rig can be found on Capstar’s website at http://capstardrilling.com .
In addition, the Company has contracted Baker Hughes Oilfield Services for wellhead and surface control equipment. Weatherford International will conduct out the open hole well logging.
Mobilisation and rig up
Mobilisation of the rig from the Rocky Mountains area to the well site is now complete. Rig up, testing and safety checks are expected to be completed by 06:00 PT, 26th November. Spudding of the Eblana-9 well will take place shortly thereafter if no technical issues arise. Shareholders will be informed when drilling has begun.
The Eblana-9 well will target a highly prospective formation on the Company’s East Prospect. The well will be drilled vertically to a depth of approximately 5,300 ft. Drilling to target depth is expected to take approximately eight days, and will be followed by five days of further operations for a probable total of thirteen days for the full programme.
All the Company’s operations in Nevada are carried out by Major Oil Intl. LLC., the wholly owned subsidiary of US Oil and Gas plc. Through Major Oil, the Company owns a 100% interest in its Nevada leases.
All operations onsite will be carried out with due regard to Covid-19 precautions and procedures in accordance with a developed Covid-19 protocol.
Brian McDonnell, US Oil CEO, said:
“We are delighted to have contracted Capstar Drilling for the Eblana-9 well. Capstar is a highly experienced Company with decades of drilling experience. The Capstar 312 rig is a highly capable, advanced design and is also extremely efficient in terms of mobilisation and rigging up.
“Our planned drilling and testing programme is the result of many months of careful preparation by our technical team. Personnel and equipment from Baker Hughes and Schlumberger are also contributing their technology and world-class expertise. The aim is to ensure we collect downhole data of the highest quality and with maximum efficiency, so we can make the right decisions about the potential of the well and the next steps to take. This is an exciting time for everyone involved—shareholders, the technical team and the Board. As I’ve said before, the drill bit will decide, but we believe we are fully justified in having high hopes for a commercial well.”
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