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.

23 December, 2016 - U.S. Oil & Gas Plc - Consolidated Audited Annual Results for Period Ended 31 July, 2016.

U.S. Oil & Gas Plc.

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

Consolidated Audited Annual Results for Period Ended 31 July, 2016

The Company is pleased to report its audited consolidated annual results for the year period ended 31 July 2016.

Corporate Highlights

-              Funds raised $1,545,000

Operational Highlights

-              Additional data acquired

-              VSP WAW study completed

-              3D Structural Modelling underway

Financial Highlights

-              Administration expenses $808,748 (2015: $502,377).  The increase in expenditure was primarily due to increased exploration activity over the period and loss on currency movements.

-              Total comprehensive loss $808,279 (2015:  $501,958); and cash and cash equivalents $1,204,719 (2015: $379,867).  As a result of VAT refunds the cash and cash equivalents on hand as at 31 July 2016 amount to circa $1.1m. The Company is debt-free.

Review of the year ended 31 July 2016

Closure of GXG Markets

On 18 August 2015, GXG Markets ceased operations, leaving US Oil without a trading platform. The Company is now preparing to seek a listing on a recognised market and is making progress towards satisfying various admission requirements.

Industry environment

Throughout the period, turbulence in the oil industry caused by a precipitous drop in the oil price led to extreme risk aversion.  Progress towards the industry partnership the Company seeks for a large-scale exploration programme slowed markedly. The Company took the view that the best way forward was to make independent operational progress until such time as the oil price and industry confidence recovered.  Meanwhile, potential partners would be kept fully apprised of developments.

The Board decided it should press on with a data collection and drilling programme based on re-entering the Eblana #1 well.  The objectives are to raise Contingent Resources  to Proven Reserves and, if possible, achieve a commercial rate of flow from one or more zones of interest.  In addition, the wider potential of the prospect could be further evaluated in the light of the additional data acquired by survey and drill.

Operational progress

Throughout the period, the Company intensified its exploration efforts, carrying out additional geochemical and geophysical surveys and analyses, as well as updip studies.  Eblana #1 well tubing was removed and a Cement Bond Log run.  Permits for re-entering Eblana #1 were applied for and awarded.  Halliburton, a major oil services company, were engaged to carry out an advanced modelling exercise and a Vertical Seismic Profile (VSP) study.  VSP data collection was completed in June 2015 and processing begun.  In addition, Baker Hughes was contracted to integrate all data collected, including VSP data, and create a structural model as well as updating volumetrics for the prospect.  The intention is to enable fine-tuning of the drill plan to de-risk the planned drill insofar as that is possible.

Due to the depressed state of the oil industry during the period and the resulting dramatic fall in service prices, the Company was able to achieve significantly enhanced value for its exploration expenditure during the period.

 Appointment of Independent Director

On 21 October, 2015 Dr. Brian McBeth was appointed as an Independent Non-executive Director.  Dr. McBeth trained as an economist and worked in the financial sector in the City of London between 1979 and 2008 specialising in oil companies. The Board welcomed Dr. McBeth's appointment and look forward to benefiting enormously from the breadth of industry knowledge and experience he is bringing to the Company.

Fund raising

During the period, the company raised funds in an Open Offer and a two Placings.  The Company raised approximately $1,545K (before/after currency adjustments) issuing 4,305,862 new Ordinary Shares at £0.27. These fundraisings placed the Company in a strong financial position to move forward on both operational and corporate fronts.

Outlook and post balance sheet events

Currently, Baker Hughes are completing their data analysis and modelling exercise.  Preliminary results confirm the viability of the Eblana #1 re-entry plan, and the Board is tremendously encouraged by the emerging picture.  In addition, with the recent partial recovery in the oil price and perceived stabilisation in the market, sentiment towards exploration has improved markedly.  This development has potentially positive implications for investment and industry partnership.  The low potential cost of conventional production from Hot Creek Valley compared to shale plays should prove an attractive proposition.  The Company also expects that prices for industry services, including drilling, will continue to be competitive for some time.  US Oil is well placed to take significant advantage of low costs for drilling and services.

In spite of the demanding industry environment, the Company has shown itself capable of developing an appropriate forward-looking strategy, raising funds, making significant operational progress and reducing exploration risk.  This progress leaves the Company well positioned to carry forward its plan to re-entering its Eblana #1 well in the next and most exciting stage of its exploration in Hot Creek Valley, Nevada.

From a financial perspective, the company will continue to reduce its risk exposure to currency fluctuations.

Chairman of the Board
Consolidated Statement of Comprehensive Income
for the period ended 31 July 2016    
    1 Aug’ 15 to         1 Oct '14 to
    31 Jul '16         31 Jul '15
Continuing Operations     $         $
Administrative expenses     (808,748)         (502,377)
Operating loss     (808,748)         (502,377)
Finance Income     582         419
Interest payable and similar charges     (113)         -
Loss for the period before taxation    
Income tax expense     -         -

Loss for the period from continuing operations    
Other Comprehensive Income     36,717         -
Total Comprehensive Loss for the period     (771,562)         (501,958)

Loss attributable to:            
Equity holders of the Company     (808,279)         (501,958)
Total Comprehensive Loss attributable to:
Equity holders of the Company     (771,562)         (501,958)

Consolidated Statement of Financial Position
as at 31 July 2016    
        31 Jul '16         31 Jul '15
        $         $
Non-Current Assets                
Intangible Assets         5,173,729         5,173,729
Total Non-Current Assets         5,173,729         5,173,729

Current Assets                
Trade and other receivables         90,143         87,326
Cash and cash equivalents         1,204,719         379,867
Total Current Assets         1,294,862         467,693
Total Assets         6,468,591         5,641,422

Capital and Reserves                
Share capital presented as equity         6,194         5,715
Share premium         11,845,890         10,247,441
Treasury shares         102         102
Share based payments reserve         168,305         168,305
Retained Loss         (5,708,433)         (4,936,871)
Attributable to owners of the Company         6,312,058         5,484,692
Total Equity         6,312,058         5,484,692

Current Liabilities                
Trade and other payables         156,533         156,730
Total Current Liabilities         156,533         156,730
Total Liabilities         156,533         156,730

Total Equity and Liabilities        


Neither this announcement nor the information contained herein constitutes an
offer or solicitation by U.S. Oil and Gas plc for the purchase or sale of any
securities nor does it constitute a solicitation to any person in any
jurisdiction where solicitation would be unlawful.

For further information contact:

Brian McDonnell, Chief Executive Officer +353 (1) 631 9022
Alexander David Securities Ltd - Corporate Finance Adviser
David Scott +44 (0) 20 7448 9820
James Dewhurst +44 (0) 20 7448 9820
Email:  james.dewhurst@ad-securities.com

Definitions:  The terms ‘Reserves’ and ‘Contingent Resources’ are as defined in the ‘Petroleum Resources Management System’ of the Society of Petroleum Engineers.

About U.S. Oil & Gas:

U.S. Oil & Gas plc is an 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