U.S. Oil & Gas plc - Update
PR Newswire
London, December 22
December 23, 2021
U.S. Oil & Gas Plc.
("US Oil" or the "Company")
Update
U.S. Oil & Gas Plc, ("USOIL" or the "Company"), the oil and gas exploration company with assets in Nevada, makes the following announcement:
Leases
Although the Hot Creek Valley leases appraised for drilling Eblana-7, -8 and -13 wells are set to expire in Q1 2022, the Board believes that sufficient time remains to drill a well or wells if permits are awarded soon. Currently, the Company is exploring with the Bureau of Land Management the possibility of suspending and extending leases given the disruptions and uncertainties of the last year. However, whether or not sufficient funding can be raised to drill before the relevant leases expire remains uncertain.
Funding
Currently, the Company is actively engaged in seeking the necessary investment to drill at least one well, and efforts will continue through Q1 2022. Meantime, the Company does not intend to solicit funds solely for day-to-day overheads. Instead, the Board has resolved to implement, from December 31 2021, a plan that includes curtailing the Company's operations by reducing equipment holdings, storage facilities and other overheads, including personnel costs. As part of this effort, salaries, including directors' remuneration, will be cut by 80%. Core corporate activities, including audit, regulatory and legal functions will continue.
Strategy
The Board's strategy is to position the Company to take advantage of any positive developments and opportunities arising in the longer term. The Board has carefully considered the Company's options in the event that funds are not raised soon enough to enable drilling on the leases set to expire in early 2022. Although those leases will expire if oil is not produced in paying quantities, other prospective leases will still be held by the Company.
Leases held include 52,046 acres impacted by a court-ordered suspension of operations on federal leases in Wyoming, Utah and Nevada, as previously reported. This suspension may in time be lifted and allow operations to continue. In addition, the Company holds two leases totalling 1,223 acres, considered highly prospective, that are not constrained by the court order and that do not expire until 2030. Given the required funding, the Company would engage in exploring those leases to appraise prospects for drilling. In the short term, however, all efforts are being directed to raising the necessary funds to drill at least one well before the leases of current interest expire.
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
