13 January, 2017 - U.S. Oil & Gas Plc - Resource Estimates Update
U.S. Oil & Gas Plc.
("US Oil" or the "Company")
Resource Estimates Update
U.S. Oil & Gas Plc, the oil and gas exploration company with assets in Nevada, makes the following announcement:
- Structural modelling report for US Oil’s Hot Creek Valley Prospect by Baker Hughes complete
- OOIP Best Estimate for the Tertiary Eblana Structure is over 1 billion barrels Contingent Resources
- Recoverable Contingent Oil Best Estimate is 203.4 million barrels
- Estimates for full lease acreage in preparation by Baker Hughes
Structural modelling of US Oil’s Hot Creek Valley Prospect by Baker Hughes is complete. The Board and the Company’s technical team are now studying the findings, and further details will be communicated to shareholders in due course. In the meantime, Baker Hughes’ revised Oil-In-Place estimates can be reported. These are a significant upgrade on the previous estimates reported in 2013.
For four zones of the Tertiary Eblana Structure, Oil-In-Place estimates and Recoverable Oil are as follows:
Low case Best case High case
TZ1 185 677 1214
TZ2 8 29 58
TZ3 9 40 83
TZ4 72 271 539
OOIP (millions barrels) 274 1017 1894
TOTAL RECOVERABLE CONTINGENT OIL RESOURCES (millions bbls
at 20% recoverability) 54.8 203.4 378.8
Zones TZ2 and TZ4 flowed oil on previous tests.
In 2016 the Company contracted Halliburton to carry out a Vertical Seismic Profile (VSP) survey based on US Oil’s Eblana #1 discovery well, and Baker Hughes (BHI) to carry out structural modelling based on all the available data including VSP. The purpose of the structural modelling was to reduce risk as far as possible before the Company carries out its plan to re-enter the Eblana #1 well and sidetrack to identified targets. In addition, Baker Hughes calculated the revised Oil-In-Place estimates reported above for the Tertiary Structure updip of the Eblana #1 well. These estimates do not include the Palaeozoic strata, which may also be highly prospective. Baker Hughes is currently working on revised Oil-In-Place estimates for the Company’s full 88 sq km lease acreage, and these will be reported in due course.
The Company is now moving forward rapidly with its corporate and operational agendas. The Board and the US Oil technical team will now take time to study the Baker Hughes report. Meanwhile, discussions with drilling contractors are taking place, and a detailed drill plan is being prepared.
Fundraising efforts continue with the primary aim of maximising resources for drilling operations.
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS
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
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