23 December, 2011 - U.S. Oil & Gas Plc - Operations Update
23 December, 2011
US Oil and Gas plc
("US Oil" or "the Company")
U.S. Oil and Gas (PLUS: USOP), with exploration assets in Nevada, USA, announces the following Company update.
Nevada land auction
On December 13th 2011, Major Oil International LLC, a wholly owned subsidiary of US Oil and Gas plc, acting through an agent, entered winning bids in the Nevada Bureau of Land Management auction for oil leases in the state of Nevada.The auction was for two lots abutting US Oil's existing lease area,and these will approximately double the company's total holding to 10,738 acres (approx. 43 sq. km.).The company is awaiting receipt of final documentation confirming the leases and expects this shortly. The intention in acquiring the new leases is to enhance US Oil's Nevada asset, but the company does not foresee expending significant exploration effort in advance of its currently planned drilling programme.
Drilling contractor and APD
On October 19th 2011, the company filed an Application for Permit to Drill (APD) with the Nevada Bureau of Land Management (BLM). US Oil had already engaged at that point in advanced negotiations with drilling contractors. During discussions with the BLM concerning the APD, new technical requirements were raised necessitating the supply of information from the relevant drilling contractor when selected. On receipt, the BLM will then be in a position to make a decision on the approval of the APD.
On 23rd August last, the ordinary shares in US Oil and Gas were suspended from trading on PLUS-quoted, in accordance with Rule 78 of the PLUS Rules for Issuers.Discussions with PLUS continue, and the board is confident that progress is being made.
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
For further information contact:
U.S. Oil and Gas plc
Brian McDonnell, Chief Executive Officer +353 (0) 872383419
Lionsgate Communications - Financial Public Relations
Natalia Egorova +44 (0)7500 828771
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.
For further information please refer to our website at: www.usoil.us
U.S. OIL AND GAS PLC
(END) Dow Jones Newswires
December 23, 2011 12:00 ET (17:00 GMT)