U.S. Oil & Gas plc - Operations Update
PR Newswire
London, May 11
11 May, 2018
U.S. Oil & Gas Plc.
("U.S. Oil" or the "Company")
Operations Update
Highlights:
Eblana-3 well successfully drilled to 8,200 ft., cased and cemented;
Wire-line and mud log results highly encouraging, identifying multiple potential hydrocarbon zones in the Tertiary with very good porosity and permeability;
Intention to complete and test with a more suitable rig;
Zones of interest confirmed as structurally up-dip of previously identified zones in the Eblana #1 well.
The Company is pleased to report excellent progress in its drilling operations at Eblana-3. The well was initially drilled to 2,595 ft., and on 20 April 2018 surface hole logs and casing were run. Drilling resumed to a depth of 7,000 ft., before drilling was again paused on 1 May, 2018. An open hole log set was then run by Baker Hughes Inc. The data collected was of excellent quality. After logging, 7-inch casing was set and cemented, and drilling was resumed to a depth of 8,200 ft., ceasing at 17.00 PST on 7 May 2018. No open-hole flow testing was carried out.
Analysis of logging data confirms that the well has intersected oil bearing formations exhibiting very good porosity and permeability. Potential zones as indicated by the data are distributed in multiple horizons. The composite geological mud logs indicate the potential reservoir zones have excellent cut, streaming, fluorescence and very good oil staining, and show excellent correlation with the wire-logs. The two Tertiary zones that flowed oil in Eblana-1 appear to be present in Eblana-3.
Eblana-3 will be completed and tested using a more suitable rig and after obtaining the requisite regulatory approvals. Given the considerable number of potential hydrocarbon-bearing zones encountered, the priority is to devise the optimal perforation and testing plan, and reservoir analysis work is now underway. Meantime, rig availability has been confirmed and testing will proceed as soon as practicable. Shareholders will be informed of the planned work programme and schedule as soon as arrangements have been finalized.
The Eblana-3 appraisal well is located on Lease 87414 in Hot Creek Valley, Nevada. US Oil owns a 100% interest in the lease through its wholly-owned subsidiary Major Oil Intl. LLC.
Brian McDonnell, US Oil CEO, said: "We are delighted to have completed drilling operations at Eblana-3 safely and efficiently, and I would like to sincerely thank all personnel involved. Both wireline and mud logging have produced highly encouraging data, indicating potential viable hydrocarbon bearing zones and prompting us to concentrate our efforts and resources on completing and testing this well. We are now working hard to ensure that our testing programme is as efficient and effective as possible. We look forward keenly to the next stage in our programme, the perforating and testing of Eblana-3."
FORWARD-LOOKING STATEMENTS
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.usoil.us
