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.

08 June, 2012 - U.S. Oil & Gas Plc - Operations Update: Eblana #1

                                              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, announces that  the Eblana  #1  exploration  well,  being  drilled by its wholly owned subsidiary  Major  Oil   International  LLC, encountered  nine  large  potential porous oil reservoir intervals (approx. 1,100  feet)  and  associated  high fracture  zones before reaching its target depth of 8,550 feet on 26th May 2012. The initial interpretation  of well logs confirms all of the hydrocarbon shows and reservoir intervals previously recorded while drilling.

Because  of  the large total size of the reservoir zones and the complex lithological  heterogeneities  in  Hot Creek  Valley,  further  advanced  well log processing and interpretation is  currently  being  undertaken  for reservoir characterization studies in order to select the optimal production zones for perforation and testing. No flow testing has taken place.

The  production wellhead has been installed. A specialist work-over drilling contractor required to perform the production tests will move on to site once the downhole multiple reservoir analysis is complete.

CEO  Brian  McDonnell  said, 'The number and size of the reservoir zones we encountered  was  well  beyond  our  expectations.   Baker  Hughes, who conducted all of the testing, are carefully analysing and  interpreting  the data and when complete flow testing will commence.'

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