U.S. Oil & Gas plc - Operations Update
PR Newswire
London, December 11
December 11, 2020
U.S. Oil & Gas Plc.
("US Oil" or the "Company")
Operations Update
Highlights:
Eblana-9 successfully plugged
Post-drill evaluation underway
Targeting next well underway
U.S. Oil & Gas Plc, ("USOIL" or the "Company"), the oil and gas exploration company with assets in Nevada, announces that it has successfully plugged the Eblana-9 well. The site is now ready for remediation.
Post-drill evaluation and future well targeting
The technical team is currently reviewing downhole data from the Eblana-9 well, along with all previously collected and analysed data, to revise the Company's picture of the oil system in the East and to identify possible additional drill targets.
During the Eblana-9 drill, downhole data fully corroborated the pre-drill interpretation of the 2-D seismic lines used to target the well. Structures were encountered as predicted by the interpretation. The Company believes this development is highly significant, as it greatly increases confidence in the potential of existing seismic lines to accurately identify structures of interest.
In addition to identifying potential drill targets to the East in the light of the Eblana-9 results, prospective targets on the Company's West Play will now be further assessed. Throughout 2020, geological work on the West Play continued and is now almost complete. It had been believed that to finalise drilling locations in the West Play additional seismic data would be needed, as the accuracy of interpretation of the existing lines was unknown. However, since Eblana-9 has confirmed that the existing 2-D seismic accurately delineates structures of interest, and the Company's structural interpretations are sound, further seismic may not be required. The existing lines extend to the West and adequately cover the area of interest.
Funding, planning and timetable
The Company's cost-effective and disciplined approach to the Eblana-9 drill allowed significant funds be conserved, not only enabling the Company to continue as a going concern but also to actively continue exploration. The emphasis at this time is on completing the scientific work in the near term. This will allow the Company to determine the location and cost of its next well. As soon as a drill location is finalised, an Application to Drill (APD) will be submitted to the Bureau of Land Management (BLM). The Company expects the permitting process to proceed efficiently and without undue delay.
Brian McDonnell, CEO of US Oil and Gas said,
"We have efficiently plugged the Eblana-9 well and cleared the site in preparation for site remediation work. As with its previous wells, the Company is fulfilling its environmental, moral and regulatory obligations to minimise the impact on the environment.
"We are now closely analysing the data collected from the Eblana-9 well, not only to understand the results of the drill but to identify additional drilling targets. Already, it is clear that our interpretation of the existing 2-D seismic lines used to delineate structures of interest has been confirmed by the drill. This is excellent news for us, as the same seismic lines extend across our West Play. We now know that those lines are in fact capable of precise interpretation.
"In terms of further exploration, we have hit the ground running. We expect to have our next drill locations identified and assessed within weeks and an APD submitted immediately afterwards. Our efficient drilling of Eblana-9 and careful financial risk management successfully contained costs and resulted in low financial exposure. Our belief in an extensive oil system in Hot Creek Valley remains unshaken, and we mean to take the Company forward to its next well within the shortest possible time."
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
###
