U.S. OIL and GAS plc's (Ticker: USOP) core activities are in the USA, with ongoing exploration activity in Nevada where the company holds a large lease acreage.

17 August, 2011 - US Oil and Gas plc - Final Geochemical Results Confirm Large Hydrocarbon Surface Anomalies

 TIDMUSOP

17 August 2011

U.S. Oil and Gas Plc.

("US Oil" or the "Company")

FINAL GEOCHEMICAL RESULTS CONFIRM LARGE HYDROCARBON SURFACE ANOMALIES

U.S. Oil and Gas plc (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada, USA, is pleased to announce final geochemical survey results for its entire lease area, based on a report from Fausanaugh et al.

Highlights:

* Five anomalies, larger than previously reported, confirm earlier results and divide into northern and southern groups, with the northern group analogous to trends found in oil-producing Railroad Valley. 

* Lighter gravity hydrocarbons (light oil, condensate, gas) are potentially located to the mid-north and mid-northwest, with increasing hydrocarbon fluids gravity to the south (oil). 

* Current estimated anomaly size is up to 400 acres per anomaly, that is on average 30% of the lease area shows signs of hydrocarbon alteration. 

Samples  were analysed for hydrocarbon content using seven variables including: Magnetic Susceptibility ("MS"), High Resolution Soil Spectral Analysis ("HRSSA"), UV-Vis Spectroscopy, Iodine, and Soil Electrical Conductivity ("UMHOS").  These analysis methods are independent of one another and are used for the detection of hydrocarbon microseepage phenomena related to potential oil and gas reservoirs at depth.  

Analysis  of  the  results  confirms potentially five defined hydrocarbon reservoirs.  These  are  larger  than previously reported, and some subsume more than one previously reported anomaly.

The  seven  variables  measured consistently yield almost similar anomalies, supported by  local  and  regional faulting.  The five alteration anomalies have similar orientation to that of the regional grain of  the  survey area.  Two of the anomalies are analogous to trends found in the adjacent oil-producing Railroad Valley.   Two others  are  associated with much higher MS measurements than the rest and are coincident  with  a  significant fracture network and near-surface faults. 

Final  anomaly  sizes, extracted from the latest data, yield a current estimated size of up to  400  acres  per  anomaly, indicating that, on average, 30% of the lease area shows signs of hydrocarbon alteration. 

Fausanaugh  et al. also reported that a geochemical concentration gradient of high to low has been  established on  the lease area. Lighter gravity hydrocarbons (light oil, condensate, gas) are located to the mid-north  and mid-northwest,  with increasing hydrocarbon gravity to the south (oil). All the anomalies are  associated  with geochemical halo patterns. 

US  Oil's  Chief  Executive  Officer,  Brian McDonnell, said: "These  are  excellent  results,  confirming  our expectations and doubling the size of our geochemical hydrocarbon footprint. This data, integrated with the 3-D Infrasonic Passive Differential Spectroscopy ("IPDS") results, due imminently, will be invaluable in giving  us the fullest possible picture before drilling begins."

THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT

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For further information contact: 

U.S. Oil and Gas plc 

Brian McDonnell, Chief Executive Officer +353 (0) 872383419   

 

SVS Securities plc - PLUS Corporate Adviser 

Peter Ward / Alexander Brearley +44 (0)20 7638 5600

SVS Securities plc - Broker 

Ian Callaway / Alex Mattey +44 (0)20 7638 5600

ian.callaway@svssecurities.com   

 

Notes to Editors:

U.S.  Oil  and  Gas  plc is a PLUS-quoted (Ticker: USOP) 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.  US  Oil has completed extensive surveys of its Hot Creek lease area, generating 18 datasets using the following survey  methods: Gravity and Magnetic Resonance, Geochemical, 2-D Seismic, Landsat remote sensing,  Geophysical studies,  Conodont  Alteration Index (CAI), Pyrolysis (TOC), Vitronite Reflectance-Visual  Kerogen  (TAI),  2-D Passive Seismic (IPDS) and 3-D Passive Seismic. 

The Company has funding in place for a three-well drilling campaign intended to begin shortly.   

For further information please refer to our website at: www.usoil.us  

U.S. OIL AND GAS PLC 

(END) Dow Jones NewswiresAugust 17, 2011 06:59 ET (10:59 GMT)