U.S. Oil & Gas plc - Operations Update
PR Newswire
London, April 9
April 10, 2020
U.S. Oil & Gas Plc.
("US Oil" or the "Company")
Operations update
Highlights:
Drill permit process progressing
Multi-block hydrocarbon compartment mapped in a four-compartment East Prospect structure
Eblana-9 well to target one block with estimated 28 million barrels of oil
Additional exploration leases secured in Hot Creek Valley
OPERATIONS UPDATE
Application to Drill
In a news release of December 23, 2019, the Company reported that it hoped to drill in Q1 2020, subject to regulatory permissions. However, the permitting process is still ongoing, although the Company believes it is currently gaining momentum. The Company is engaged intensively with the federal Bureau of Land Management (BLM) on the Permit to Drill application process. In spite of the current Covid-19 crisis, indications at present are that federal and state regulatory processes may not be slowed to a significant degree, and permitting can be expected to move forward efficiently.
The Company hopes to drill in Q2, 2020, subject to permit approval. However, possible Covid-19 constraints may impact the timetable for operations in ways that cannot be anticipated at this point. The Company will keep the situation under review and adjust its plans accordingly.
Prospect modelling
In parallel with preparing and submitting its Application to Drill, the Company has continued intensive data analysis work on its East Prospect. Further modelling of the oil system and the targeted reservoir was carried out to assist in post-drill operations and field development planning and to further reduce risk. All indications so far support the belief that the East Prospect is an analogue of Railroad Valley's Trap Spring field (15.2 million barrels oil produced to 2015).
The planned well (Eblana-9) will target 28 million barrels of oil (STOIIP) in one block of a mapped multi-block compartment in a four-compartment East Prospect structure. Eight wells can potentially be supported on the single targeted block. Two additional large East Play reservoir structures have also been identified. Field potential is estimated to be up to one billion barrels.
LEASE ACQUISITION
In a competitive auction held by the Bureau of Land Management (BLM) on March 24, 2020, the Company successfully bid for an additional 1,223 acres adjacent to its existing holdings in Hot Creek Valley and believed prospective in the light of currently available data. The total amount bid was $4,621. The acquisition is subject to the issuing of official confirmatory documentation. Including the newly acquired acreage, the Company's total acreage position, held by its wholly owned subsidiary Major Oil Intl. LLC, is 74,948 acres.
FORWARD-LOOKING STATEMENTS
The statements in this communication reflect the current thinking of the Board and the Company's present plans. The Company reserves the right to alter plans in the light of developing knowledge and circumstances. Shareholders' attention is drawn to the note below concerning Forward-looking Statements.
This press release contains certain "forward-looking statements" and "forward-looking information". Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to: business plans and strategies of US Oil and Gas; operating or technical difficulties in connection with drilling or development activities; availability and costs associated with inputs and labour; drilling and exploration costs; the speculative nature of oil exploration and development; diminishing quantities or quality of reserves; synergies and financial impact of completed acquisitions; the benefits of the acquisitions and the development potential of properties of US Oil and Gas; the future price of oil; supply and demand for oil; the estimation of reserves; the realization of reserve estimates; costs of production and projections of costs; success of exploration activities; capital expenditure programs and the timing and method of financing thereof; the ability of US Oil and Gas to achieve drilling success consistent with management's expectations; net present values of future net revenues from reserves; expected levels of royalty rates, operating costs, general and administrative costs, costs of services and other costs and expenses; expectations regarding the ability to raise capital and to add to reserves through acquisitions, assessments of the value of acquisitions and exploration and development programs; geological, technical, drilling and processing problems; treatment under governmental regulatory regimes and tax laws.
All statements other than statements of historical fact are forward-looking statements
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT
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
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.usoilandgas.us
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