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.

13 August, 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,  is  pleased  to announce  that  ground operations for the workover programme on its Eblana #1 well will begin on  27th  August, 2012, with production testing to commence  on September 4th.

After  reviewing  all available well data, the well workover plan has been finalised , including   a  formation simulation and production testing programme for depths from 5,500 to 8,400 feet.

The  plan was prepared by Karim Akwari, petroleum geologist; Saad Saleh, drilling engineer; and Soran Talabani,  petrophysicist.  Review was by  Diyar Barzanji, reservoir engineering, management and simulation; Serdar  Kaya, reservoir  engineering and simulation; Tim Howard, reservoir management, drilling; and  H. J.  Saleh,  drilling engineer.  The combined industry experience of the reviewers is over 200 years.

The production testing programme will involve:

1.  Up to 15 potential reservoir zones

2.  Perforation

3.  Isolation

4.  Acidization

5.  Enzyme stimulation

6.  Fracturing

Flow  testing  will  include  measurement of well head flowing pressure, well head  closed-in  pressure,  fluid
temperature at the surface, fluid flow rate, and gas flow rate through the flare.

A  number  of  additional contractors, including Baker Hughes and Schlumberger, will be available   to  provide expertise  as and when required.  On completion of the workover, the data collected will be provided to  Forest Garb & Associates and others for independent analysis.

U.S.  Oil  CEO Brian McDonnell said, "Our successful drilling of Eblana #1 generated large amounts of data  and identified a large number potential pay zones.  Designing the follow-on  workover programme was complex, but we are  satisfied with the resulting operational plan and are confident that the next stage can be executed in the most  efficient and effective way possible.  We would like to thank our expert team for their outstanding  work during  this exercise and thank our shareholders for their continued patience as we move forward with the  next stage of our programme in Hot Creek Valley."

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.

For further information please refer to our website at: www.usoil.us

U.S. Oil & Gas PLC