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.

22 March 2013 - U.S. Oil & Gas Plc - Preliminary Audited Consolidated Annual Results for 30 September 2012

U.S. Oil & Gas Plc.

("U.S. Oil" or the "Company")

Preliminary Audited Consolidated Annual Results for 30 September 2012

The Company is pleased to report its preliminary audited annual results for the year ended 30 September 2012.

Highlights

--  Acquired additional leases in Hot Creek Valley, Nevada - total lease area amounts to over 88 sq. km;
--  Fund raise of $1,785,167 in July 2012;
--  Paul O'Callaghan appointed as Non-Executive Director on 2 August, 2012;
--  Shares admitted to trading on the GXG Markets Multilateral Trading Facility ("MTF") on 31 August 2012;
--  Administrative expenses for the year rose to $1,242,527 (2011: $629,174) as company stepped up its operating activities while implementing tight cost controls;
--  After tax loss of $1,220,992 (2011: $622,688)
--  Cash and cash equivalents at 30 September 2012 of $3,517,730 (2011:  $6,218,043);
--  On 1 March 2013, the Company announced that it had established consistent flows of light sweet crude on its Elbana 1 well.

Review of the year ended 30 September 2012

The 12 months to 30 September 2012 was a period of change for the Company. Despite a number of non-operational issues that took Board time and effort to resolve, I am delighted to report that the Company achieved significant operational milestones during the period.

In February 2012, we obtained a Competent Person's Report (CPR) from independent petroleum consultants Forrest A. Garb & Associates (FGA). The report was based on the data then available relating to US Oil's original 20 sq. km lease area. FGA's Best Estimate (50% probability based on SPE-PRMS) of Gross Prospective Resources was 189 MMSTB of oil in place with recoverable oil estimated at 67 MMSTB. The Company subsequently acquired an additional 68 sq. km in leases contiguous with the original area.

During 2012, the Company also successfully raised additional funding of US$1,785,167 to fund its Phase 1 Development Programme. This contributed to the combined cash, cash equivalents balance of $3.517,730 as at 30 September 2012. The results for 2012 reflect the tight cost controls over the continuing operational activities in Nevada and show a loss after tax of $1,220,992 (2011: $622,688).

We commenced drilling our first well, Eblana #1, on 7 May 2012 on our lease acreage in Hot Creek Valley, Nevada, USA and reached a total depth of 8,550ft on 26 May 2012. The well was then cased and cemented. During the drill more than 1,000ft of cumulative net oil and gas pay potential zones were encountered. Reservoir quality was excellent with good porosities ranging from 14% to 28% and with high permeable fracture zones associated with high gas peaks. A bottom up test completed on 24 May saw good light gravity oil recovered at the surface. The Company commenced its test programme in mid-September 2012.

Post Balance Sheet Events

We resumed testing in mid-January 2013 and have made what we believe is a significant oil discovery. The discovered oil system stretches to the south and south west of Eblana #1. The test programme so far has investigated 42 zones, and one zone has produced a continuous flow of crude oil and water. Laboratory results have confirmed the sweet crude oil from this zone is 28.5 API with a trace of contaminants and no hydrogen sulfide. A further interval has produced light crude oil and water with an API of 33. Based on this, we were able to confirm the first discovery of light sweet crude in Nevada for over 30 years. The Board expects the resumption of testing will confirm a minimum Net Pay Zone of 150ft and is hopeful of producing a stabilized flow rate, which may prove commercial. For a first exploration well in an unproven location this is a
remarkable result, and we are delighted by the achievement.

Throughout the period, we were fully supported by the US authorities, the Bureau of Land Management and the Nevada Division of Minerals, in our operations in Hot Creek Valley, and we would like to thank them for their continuing support.
 
In November 2012, US Oil successfully obtained a Court Order in Dublin requiring the operators of a number of websites based in the UK and Ireland to disclose the identities of those users of their bulletin boards who had made unlawful statements concerning the Company and its directors. US Oil continues to pursue those involved.

On 22 November 2012, the Board agreed to award 2,455,000 shares at prices of GBP 0.65 and GBP 0.68. The meeting of the Company's Remuneration Committee confirming the awards was held on 23 January 2013. The options were awarded to service providers, consultants and Directors.

The Company has appointed Deutsche Bank Trust Company Americas as depositary bank for its proposed American  Depositary Receipt (ADR) programme. It is expected that this process will be completed in the near future.

Outlook

The Company is currently undertaking Phase I of its strategic plan - the testing of Eblana #1. We intend to update the current CPR based on the latest data.

We also plan to collect additional data on the new acreage throughout 2013 with testing and production, reservoir engineering, well design and flow assurance studies. We then expect to commence drilling of the next well, Eblana #2. The aim of the planned drilling campaign will be to increase the precision with which we can estimate the total field size and volumes of recoverable oil, as well as, hopefully, contribute to production and hence cash generation. These studies are expected to help to define the "Master Development Plan" for the Hot Creek Valley field and the expected development costs.

I believe that we have achieved outstanding progress while keeping a tight control of expenditure and by working to maintain overheads appropriate to the Company's development at any particular time. The Board and I remain committed to this philosophy, developing the Company in a way that can achieve its goals, while maintaining the greatest possible degree of operational and financial efficiency.

As operations on the ground proceed, the Company will continue to examine its strategic options, with the ultimate aim of delivering value to its shareholders.

Finally, I would like to thank our shareholders for their continued support as US Oil & Gas looks forward to significantly progressing its operations in 2013.

Brian McDonnell

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

Consolidated Statement of Comprehensive Income
for the year ended 30 September 2012
Continuing Operations
                                                    30 Sep '12    30 Sep '11
                                                             $             $

Administrative expenses                -1,242,527      -629,174
                                                 ---------------------------

Operating loss                               -1,242,527      -629,174

Finance Income                                       21,535         7,486
                                                 ---------------------------

Loss for the year before taxation                   -1,220,992      -621,688

Income tax expense                                           -             -
                                                 ---------------------------

Loss for the year from continuing operations        -1,220,992      -621,688

Other Comprehensive Income                                   -             -

                                                 ---------------------------
Total Comprehensive Loss for the year               -1,220,992      -621,688
                                                 ---------------------------

Loss attributable to:
  Equity holders of the Company                     -1,220,992      -621,688
                                                 ---------------------------
                                                 ---------------------------

Total Comprehensive Loss attributable to:
  Equity holders of the Company                     -1,220,992      -621,688
                                                 ---------------------------
                                                 ---------------------------

Earnings per share from continuing operations
Basic and diluted loss per share (cent)                  -2.95         -1.78
                                                 ---------------------------
                                                 ---------------------------

Consolidated Statement of Financial Position
as at 30 September 2012
                                                 30 Sep '12       30 Sep '11
                                                          $                $
Assets

Non-Current Assets
Intangible Assets                                 3,947,199          726,471
                                             --------------   --------------
Total Non-Current Assets                          3,947,199          726,471
                                             --------------   --------------

Current Assets
Trade and other receivables                         294,352           33,228
Cash and cash equivalents                         3,517,730        6,218,043
                                             --------------   --------------
Total Current Assets                              3,812,082        6,251,271
                                             --------------   --------------

                                             --------------   --------------
Total Assets                                      7,759,281        6,977,742
                                             --------------   --------------
                                             --------------   --------------

Equity

Capital and Reserves
Share capital                                         5,670            5,634
Share premium                                     9,742,553        7,795,577
Retained Loss                                    -2,344,208       -1,123,216
                                             --------------   --------------
Attributable to owners of the Company             7,404,015        6,677,995
                                             --------------   --------------

Total Equity                                      7,404,015        6,677,995
                                             --------------   --------------

Liabilities

Current Liabilities
Trade and other payables                            355,266          299,747
                                             --------------   --------------
Total Current Liabilities                           355,266          299,747
                                             --------------   --------------

                                             --------------   --------------
Total Liabilities                                   355,266          299,747
                                             --------------   --------------

                                             --------------   --------------
Total Equity and Liabilities                      7,759,281        6,977,742
                                             --------------   --------------
                                             --------------   --------------

For further information contact:

Brian McDonnell, Chief Executive Officer +353 (0) 87 238 3419

Alexander David Securities Ltd - Corporate Finance Adviser
Fiona Kinghorn/David Scott +44 (0) 20 7448 9800

Lionsgate Communications
Jonathan Charles +44 (0)779 189 2509
jcharles@lionsgatecomms.com

GXG Markets
Simon Kiero-Watson +44 (0) 20 7653 1935
skw@gxgmarkets.co.uk

Alex Benger +44 (0) 20 7653 1935
ahb@gxgmarkets.co.uk

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

Ends