12 January, 2018
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:
Two Permits to Drill awarded, Eblana-3 and Eblana-6;
Eblana-1a still under review;
Intention to proceed with drilling;
Vendor contracts, including drilling company, can now be finalised .
The Bureau of Land Management (BLM) and the Nevada Division of Minerals (NDOM) have approved Permits to Drill for Eblana-3 and Eblana-6 in Hot Creek Valley. The application to drill Eblana-1a, the most complex of the Company's three proposed drills, is still under review. In order to make rapid operational progress, the Company has decided to move ahead with preparations for drilling Eblana-3 and Eblana-6, both vertical wells. The Company's view at this time is that it will drill Eblana-3 first, deciding on subsequent operations in the light of results.
Eblana-3 and Eblana-6 target updip Tertiary zones, while Eb-6 is also intended to drill deeper to the Paleozoics. Both are vertical wells.
Groundworks and vendors:
Groundworks, including road improvements, drill pad construction and access ways, will commence as soon as practicable. Now that permits have been granted, terms can be finalised with the selected drilling contractor and other vendors, and activities coordinated.
Shareholders will be informed by Regulatory News Service of a spud date and mobilisation as soon as all arrangements have been finalised and vendors coordinated.
CEO Brian McDonnell said:
"We are delighted to have been awarded two Permits to Drill. Our technical team has done a superb job planning our wells, and an enormous amount of additional preparatory work with service vendors has also been completed. We mean now to press ahead as quickly as possible with drilling operations. On behalf of myself and the Board, I would like to extend a special thanks to US Oil's shareholders, whose unwavering support has made possible this new and exciting phase in the Company's exploration story."
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 & 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 & 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 & 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
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.usoil.us