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.

27 February, 2012 - U.S. Oil & Gas plc - Announcement of Drilling Contractor

Announcement of Drilling Contractor

27 February, 2012
 
 
 
US Oil and Gas plc

("US Oil" or "the Company")

Announcement of Drilling Contractor
 
 
 
U.S.  Oil  and  Gas  (PLUS: USOP), with exploration assets in Nevada, USA, announces the following  operational
update:
 
US  Oil  &  Gas  plc ("US Oil" or the "Company") is pleased to announce that Major Oil International  LLC,  its wholly owned subsidiary, has agreed heads of terms with Nabors Industries Inc. to drill the Eblana #1 well plus at least one further well on the Company's 100% owned Hot Creek Valley, Nevada prospect. 

Nabors  Industries is the largest drilling contractor in the world, conducting oil, gas and geothermal drilling operations in the U.S. Lower 48 states, Alaska, Canada and internationally in more than 30 additional countries (www.nabors.com). 

The  contracted rig, No. 475 is a hydraulic Diesel Electric 1500 HP Land Rig with 710,000 lbs hoisting capacity on  Low-Low with 12 lines driven by two DC motors. The targeted drilling depth is approximately 8,000 feet  and the estimated completion time for the first well is approximately 25 days. 

During discussions with the BLM concerning the APD, all technical requirements were reviewed and the supply  of additional information from the relevant drilling contractor was agreed.  As the drilling contractor  has  been selected, this information has now been supplied to the BLM, which will enable them to complete processing  of the APD. Drilling is subject to the final award of the Permit to Drill by US federal authorities, therefore an announcement on mobilization and spudding-in date will be made in a separate press release. 

Mr.  Brian  McDonnell, CEO of US Oil & Gas, commented, "With this drilling agreement, the Company has  come  an important step closer to appraising the first of our highly prospective targets in Hot Creek Valley.   Together with  our  industry-leading  drilling partner, we keenly look forward to the  next  phase  of  our  exploration programme." 

Ron  Cleveland (Nabors Drilling, USA) said, "We look forward to working with Major Oil in Hot Creek  Valley  on this  their  first  drilling programme, bringing to bear our extensive experience of operations  in  the  Great Basin." 

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
 
negorova@lionsgatecomms.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. 
 
About Nabors Industries Ltd:
The  Nabors companies own and operate approximately 491 land drilling rigs and approximately 749 land  workover and  well-servicing  rigs in North America. Nabors' actively marketed offshore fleet consists  of  39  platform rigs,  12  jack up units and 4 barge rigs in the United States and multiple international markets. In addition, Nabors  is one of the largest providers of hydraulic fracturing, cementing, nitrogen and acid pressure  pumping services  with over 780,000 hydraulic horsepower currently in service. Nabors also manufactures top drives  and drilling  instrumentation systems and provides comprehensive oilfield hauling, engineering, civil construction, logistics,  and  facilities maintenance and project management services. Nabors participates  in  most  of  the significant oil and gas markets in the world. 

For further information please refer to our website at: www.usoil.us.
 
 
U.S. OIL AND GAS PLC
 

(END) Dow Jones Newswires

February 27, 2012 03:00 ET (08:00 GMT)