22 November, 2010 - US 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
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 US Oil's's Eblana Phase 1 Section 2 North, 5% of the lease area
- Results, including new reflective seismic data, show prospective reserves could exceed 25 million barrels in US Oil'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 thedeeper 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 1.75~2.4 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."
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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
Jonathan Charles +44 (0)20 7429 6611
email@example.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