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.

25 May, 2012 - U.S. Oil & Gas Plc - Operations Update Eblana #1

25 May, 2012

                                              U.S. Oil & Gas Plc.
                                                       
                                         ("U.S. Oil" or the "Company")
                                                       

Operations Update: Eblana #1

U.S.  Oil  &  Gas  plc  (GXG: USOP) an oil and gas exploration company focused on Nevada, USA,  is  pleased  to announce  that the Eblana #1 exploration well currently being drilled by its wholly owned subsidiary Major  Oil International LLC reached a depth of 7,474 feet on 23rd May 2012 at 22.00 hours PST.

Oil shows observed and samples collected while drilling indicate multiple potential hydrocarbon pay zones.   An estimated  gross section of up to one thousand feet of hydrocarbon shows (with possible gas/oil net  pay  zones ranging  from  100 to 300 ft) has been encountered within volcanic ash conglomerates integrated with  sandstone interbed zones, whilst further oil shows have been encountered in the deeper reservoir horizons currently being drilled.

Good hydrocarbon background gas with several high gas peaks (C1, C2 and C3) associated with bright yellow color florescence  and  streaming cuts have been recorded. At several depth intervals, laboratory retort  hydrocarbon analysis  of  bottom-up mud circulation tests of recovered fluid samples indicated light oil, with evidence  of sweet gas at the shaker.

The bottom up test completed on the open hole at 00.30 on 24th May PST saw good light gravity oil recovered  at the  surface.  Subsequent  laboratory  analysis confirmed a bright yellow  white  fluorescence  indicating  the presence of live light oil.

A  logging and production testing program, including the zones discovered to date and any deeper potential  pay zones encountered, will be carried out when target depth is reached.

US  Oil & Gas CEO Brian McDonnell said, 'We are highly encouraged by the results of our drill thus far and look forward keenly to the next stages in our exploration process.'

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

For further information contact:

U.S. Oil & Gas plc

Brian McDonnell, Chief Executive Officer +353 (0) 872383419
beamac@eircom.net

Lionsgate Communications - Financial Public Relations

Jonathan Charles +44 (0)7791892509
jcharles@lionsgatecomms.com

Notes to Editors

U.S.   Oil & Gas plc is a GXG 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.

U.S.  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 & Gas PLC