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 November, 2010 - U.S OIL And GAS Plc - Results, including new reflective seismic data, show prospective reserves could exceed 25 million barrels in USOIL's Eblana Phase 1 Section 2 North, 5% of the lease area

TIDMUSOP

22 November 2010

U.S. Oil and Gas PLC

("USOIL" or "the Company")

Results, including new reflective seismic data, show prospective reserves could exceed 25 million barrels in USOIL's Eblana Phase 1 Section 2 North, 5% of the lease area.

Highlights

  • Results, including new reflective seismic data, show prospective reserves could exceed 25million barrels in USOIL's Eblana Phase 1 Section 2 North, 5% of the lease area.
  • Analysis of the Reflective Seismic for Eblana Phase 1 Section 2 North indicates that the depth ranges for the target zones are 4000-5000 feet for shallower targets and 5000-7,700 feet for the deeper target
  • The target depth ranges identified by the Reflective Seismic results are also extremely consistent with the depth range of several of the oil producing areas in adjacent Railroad Valley, including Trap Springs and Grant Canyon

U.S.  Oil & Gas (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada,  USA, is  pleased  to  announce that the release of a report from Richards et al. on the 20th November.  The report states that new analysis of reflective seismic data for USOIL's Eblana Phase 1 Section 2  North area of its Hot Creek Valley, Nevada, lease acreage has verified the three drilling targets previously identified  by  Gravity Magnetic, Passive Seismic and Geochemical survey.  The data has  also  allowed comparison with analogous structures in the adjacent Trap Springs area of Railroad Valley, yielding an estimate of potential reserves that could exceed 25 million barrels of oil for Eblana Phase 1  Section 2 North alone. 

Historically, 2D seismic data has been relatively uninformative in Hot Creek Valley due to the  nature of  the  geology.  However, reprocessing of the data using advanced algorithms, has identified several blockfaulted areas.  Reprocessing was of two reflective seismic lines sandwiching the three  anomalies identified  by  Passive Seismic survey and near-surface Geochemical Survey undertaken  previously  and which have been identified as USOIL's first drilling targets. 

The  identified  blocks,  when coupled with the sealing nature of volcanic  ignimbrites  in  the  oil-producing areas elsewhere in the Basin and Range province, are consistent with the geologic  model  of adjacent Railroad Valley where several oil fields exist, and specifically with the reservoir  at  Trap Springs.   The  estimate of potential reserves that could exceed 25 million barrels of  oil  above  is based on Trap Springs' extracted volume of over 14 million barrels. 

Analysis  of the Reflective Seismic for Eblana Phase 1 Section 2 North also indicates that  the  depth ranges  for the target zones are 4,000-5,000 feet for shallower targets and 5,000-7,700 feet  for  the deeper  target,  the  latter coinciding with the extremely strong Passive Seismic  anomaly  and  near-surface  geochemical  results  already  reported.  For this  target,  the  Passive  Seismic  Resonance Frequency  of 1.752.4 HZ also confirms perfect thermal maturity.  The target depth ranges  identified by the Reflective Seismic results are also extremely consistent with the depth range of several of the oil producing areas in adjacent Railroad Valley, including Trap Springs and Grant Canyon. 

CEO  Brian  McDonnell  says, "We are highly encouraged to see Reflective Seismic results  confirm  our three  drilling  targets  and allow us to estimate potential reserves.  These results  are  especially exciting  as  we  have  surveyed  only  5% of our acreage in  detail.   As  the  reservoirs  could  be continuously replenished by hydrocarbons sourced from the downdip Chainman shale, as is the  case  for some producers in Railroad Valley, we could be looking at large reserves." 

--- ENDS --- 

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

For further information contact: 

U.S. Oil and Gas plc

Brian McDonnell, Chief Executive Officer                  +353 (0) 872383419

SVS Securities plc - PLUS Corporate Adviser

Peter Ward / Alexander Brearley                           +44 (0)20 7638 5600 

SVS Securities plc - Broker

Ian Callaway / Alex Mattey                                +44 (0)20 7638 5600

ian.callaway@svssecurities.com 

Conduit PR

Jonathan Charles                                          +44 (0)20 7429 6611

jonathan@conduitpr.com                                    +44 (0)7791 892509 

Notes to Editors 

US  Oil and Gas plc is a PLUS (Ticker: USOP) listed 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 into  marketable opportunities for the medium and large-sized oil companies. The Company's main  asset is  in  Nye  County, Nevada where it holds the entire share capital of the US-based company Major  Oil International  LLC.   Major  Oil  has  acquired, and intends to acquire,  rights  to  exploration  and development acreage in two high potential resource areas 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. 

The  IPDS  Passive  Seismic  Survey results reported on 26th February 2010  showed  high  DHI  (Direct Hydrocarbons Indicator) readings for Section 2 (North), with DHI of 0.96.  This section was identified as the likely first well drilling target and which has now been staked and prepared for the first well drilling  campaign.  DHI readings for Section 3 (East) of up to 0.59 DHI, led USOIL to  nominate  this section  as its likely second well-drilling target.  Geochemical results for Eblana Phase I  indicates five clearly defined hydrocarbon reservoirs, with excellent correlation with IPDS and gravity/magnetic survey results. 

The  final  shortlist of well-drilling contractors has been drawn up and the result of  the  selection process will be announced in due course.  

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

U.S. OIL AND GAS PLC  (END) Dow Jones NewswiresNovember 22, 2010 12:09 ET (17:09 GMT)