U.S. Oil & Gas plc - Placing of Ordinary Shares and Operations Update

U.S. Oil & Gas plc - Placing of Ordinary Shares and Operations Update

PR Newswire

London, July 2

July 2, 2019

U.S. Oil & Gas Plc.

("US Oil" or the "Company")

Placing of Ordinary Shares and Operations update

Placing of Ordinary Shares

U.S. Oil & Gas Plc, ("USOIL" or the "Company"), the oil and gas exploration company with assets in Nevada, is pleased to announce that it has placed with private investors 1,495,022 new ordinary shares of .0001 Euro each (the "Placing Shares") at a placing price of STG .30 per share including a share premium of .3399 Euro on each Placing Share to raise gross proceeds of circa $577,295. Each Placing Share will rank (pari passu) with each ordinary share currently in existence.

The proceeds of the placing will be used to provide US Oil with additional working capital, including the funding of drilling operations. Since no commissions are payable, the net proceeds to be received by the Company are circa $577,295. The 1,495,022 Placing Shares will shortly be issued through CREST.

Following the placing, the issued share capital of the Company will increase to 63,774,203 ordinary shares of .0001 Euro each. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

The following parties have an interest of more than 3% in the shares of the Company:

Name No of Shares Percentage holding

Brian McDonnell 3,927,940 6.2%

Operations update

Operations to plug and abandon the Eblana-1, Eblana-3 and Eblana-6 wells are complete. Plugging of associated water wells, and other works on Federal Lease 87414 are in preparation. Final reports will be submitted to regulatory authorities for approval in due course. Site remediation ground works will follow. The Board wishes to record its appreciation of the efforts of its own personnel, contractors and regulators that ensured operations at both wells were carried out efficiently and above all, safely.

The Company can now focus its efforts on moving forward with the exploration plans as outlined at its April 30 AGM and in the Regulatory News Service press release of May 14, 2019. Since that time, further geological work, including additional modelling of the oil system has reinforced the Company's belief that both Western and Eastern Plays on the Company's acreage are highly prospective and include a potential analogue of the productive Grant Canyon field in nearby Railroad Valley.

The intention now is to finalise multiple potential drilling targets in the Western Play. To this end, a seismic survey is currently being planned and detailed discussions with providers are underway. Preliminary work for the necessary Applications to Drill, including well design and other elements, is advanced. Further geochemical work will also be carried out on the Eastern Play.

CEO Brian McDonnell said: "On behalf of the Board and myself, I want to express sincere appreciation of the support shown by existing shareholders and new investors in our recent Placing. We are now focused on achieving our next drill as soon as possible. The mass of data collected from both Eblana wells has been invaluable, and our modelling of the oil system and structures in Hot Creek Valley continues to support our belief in the extraordinary potential of both Western and Eastern Plays."

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 [phone]

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

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