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
Lionsgate Communications - Financial Public Relations
Jonathan Charles +44 (0)7791892509
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