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13 January, 2017 - U.S. Oil & Gas Plc - Resource Estimates Update

U.S. Oil & Gas Plc.

("US Oil" or the "Company")

Resource Estimates Update

U.S. Oil & Gas Plc, the oil and gas exploration company with assets in Nevada, makes the following announcement:

Highlights:

Structural modelling report for US Oil’s Hot Creek Valley Prospect by Baker Hughes complete
OOIP Best Estimate for the Tertiary Eblana Structure is over 1 billion barrels Contingent Resources
Recoverable Contingent Oil Best Estimate is 203.4 million barrels
Estimates for full lease acreage in preparation by Baker Hughes
Structural modelling of US Oil’s Hot Creek Valley Prospect by Baker Hughes is complete. The Board and the Company’s technical team are now studying the findings, and further details will be communicated to shareholders in due course. In the meantime, Baker Hughes’ revised Oil-In-Place estimates can be reported. These are a significant upgrade on the previous estimates reported in 2013.

For four zones of the Tertiary Eblana Structure, Oil-In-Place estimates and Recoverable Oil are as follows:
OOIP (MMBBl)
Low case Best case High case
TZ1 185 677 1214
TZ2 8 29 58
TZ3 9 40 83
TZ4 72 271 539
OOIP (millions barrels) 274 1017 1894

TOTAL RECOVERABLE CONTINGENT OIL RESOURCES (millions bbls
at 20% recoverability) 54.8 203.4 378.8

Zones TZ2 and TZ4 flowed oil on previous tests.

Background
In 2016 the Company contracted Halliburton to carry out a Vertical Seismic Profile (VSP) survey based on US Oil’s Eblana #1 discovery well, and Baker Hughes (BHI) to carry out structural modelling based on all the available data including VSP. The purpose of the structural modelling was to reduce risk as far as possible before the Company carries out its plan to re-enter the Eblana #1 well and sidetrack to identified targets. In addition, Baker Hughes calculated the revised Oil-In-Place estimates reported above for the Tertiary Structure updip of the Eblana #1 well. These estimates do not include the Palaeozoic strata, which may also be highly prospective. Baker Hughes is currently working on revised Oil-In-Place estimates for the Company’s full 88 sq km lease acreage, and these will be reported in due course.

Work programme
The Company is now moving forward rapidly with its corporate and operational agendas. The Board and the US Oil technical team will now take time to study the Baker Hughes report. Meanwhile, discussions with drilling contractors are taking place, and a detailed drill plan is being prepared.

Fundraising efforts continue with the primary aim of maximising resources for drilling operations.

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
Alexander David Securities Ltd - Corporate Finance Adviser
David Scott +44 (0) 20 7448 9820
James Dewhurst +44 (0) 20 7448 9820
Email: james.dewhurst@ad-securities.com

Definitions: The terms ‘Reserves’ and ‘Contingent Resources’ are as defined in the ‘Petroleum Resources Management System’ of the Society of Petroleum Engineers.

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.

AGM outcome:
-Drilling of two wells now funded and will proceed (subject to relevant permissions).
-Insufficient funds available for an application to re-list on a recognised Market. In view of the potential for wildly different outcomes of the drilling process, that is probably in everyone's interest. Suspect that the timetable for an outcome to the drilling being known in Q3 may be bettered by earlier information.
-No comment appears to have been made on the Baker Hughes' view of the remaining acreage in the exploration licence. Maybe that would be of little real value pending the outcome of the drilling which is proposed for Qtr. 2-3

News of drilling dates should be announced early June with completion of the drills by September (according to the timetable suggested at the AGM)

Latest Assetmatch auction showed a strengthening of the price shares were being sold/bought. Now 30p. The company confirms it is working to the timescales given at its last AGM which was for drilling by September. Interim progress reports do not appear to be the company's policy so a dose of trust and patience is required.
As stated before this stock is a binary investment decision - if it gets drilling and looks like it is confirming the independent views of the potential then the sp should go sky high. It briefly hit £7/share some while back but the oil shows were subsequently inadequate. Since then much more work has been done to refine the drilling process to suit the local geology. The CEO always stated that pin point accuracy was required because of the geology. Sidetrack drilling should give a much higher chance of finding the oil bearing structures.

Latest Assetmatch auction price 35p/share. Closes 15/8. More shares sought than being offered as of today. If the company meets its target drilling timetable then September should see the start.

Next auction closes on 5/9. No buyers at the moment and only one seller. Tomorrow is supposedly the month when the drilling of the two sidetrack wells starts.the company look likely to keep spud dates etc to themselves. Pitiful PR. But with 50% of the stock in the hands of the Board and a few large shareholders that makes for a reasonable insurance policy that whatever the drilling produces there will be some corporate activity. This won't interest many, or most!, but one sniff of a decent drill outcome should have a dynamic effect on the value of the company.

Last auction - one trade at 34p. The lack of interest in this company is understandable given its record to date, but if the drill application (apparently awaiting approval) is approved, it may get very difficult to get any shares in this prospect.

Auction result from 21/9, one trade at 34p. Assetmatch now holding auctions for US Oil&Gas every fortnight.
No official company announcements but one source says that a new drilling pad to the south of Eblana 1 has been prepared and that a further £0.5m has been raised. This is believed to be in readiness for up to 3 drillings to be carried out once approvals are in place. These approvals are expected but no timescale seems possible to predict.
The company may have good reason for being ultra secretive or this may be because of the frenzy and mud-slinging that took place a few years ago. Because of this, the first any of us gets to hear anything at all may not be announced until after drilling and at a time when further independent assessments of the remainder of the acreage are known.
As always, do your own research before making any investment decision; investing in this stock is a binary decision, although at least the directors and close associates hold nearly half of the shares in issue, so ordinary investors can at least hope that there is plenty of incentive for the Board to make a success of this or salvage some value if the current drilling budget proves insufficient to conclusively establish what amounts of oil are in place.

Latest auction : indicate 25p sp. Not surprising given that the company makes no announcements as to where they have reached as far as drilling is concerned. Since the AGM timetable was drilling in September - they are obviously behind on that timetable. The silence from the company is pitiful and wrong.

Current Auction finishes on 30th January. With drilling permits for two wells believed to be in place this might be the last auction period before spudding. This has the potential to be one of the most interesting prospects around. Difficult to buy shares in quantity - there are not many held outside of the Board and their contacts.
Auction site: Assetmatch.com

Drilling Permits for two wells confirmed in RNS on 12/1/2018. Spud date not yet announced but suspect that within 3 months that should see the start of drilling. Still an ’all or nothing’ prospect but the ‘all’ if it happens is potentially huge. DYOR.

Latest Assetmatch auction resulted in 35p/share being paid. The new auction started today has an offer to purchase at 50p/share, reflecting the likelihood of a spud date being announced fairly soon - possibly before the end of the current auction period at the end of February. There is only a limited supply of shares being offered at this stage.

Drilling preparations are reported to be very advanced. A spud date for the first of two wells anticipated very soon. Assetmatch platform auction closes on Tuesday.

This should be the last Auction period before a spud date is announced or adrilling commences. Surprised that there is so little interest in this company even though it has been through a prolonged dormant period.

Drill rig due to arrive on site by the weekend ready for two, possibly three drill holes. Potentially exciting result if the seismic is proved accurate. Assetmatch is the only place to bid for any shares and quantities obtainable are small, but if any oil is confirmed then the current indicative price of around 30p will be a distant memory. Only around 62m shares in issue and a successful confirmation along the lines of the independent predictions would bounce the prospective value.
Surprised not more interest is being shown in this prospect in spite of the tedious share acquisition process.

Before completing testing of the drill, Major Oil (UK Oil&Gas’ wholly owned subsidiary) has just acquired a lease over a large adjacent block. Testing is ongoing. Assetmatch price has been 50p/share. Next Auction closes Tuesday, 3/7.

http://usoilandgas.us/?nooz_release=7-september-2018-u-s-oil-gas-plc-operations-update-and-lease-acquisitions

Application to Frack the Eblana drillhole. Looks to be a positive move but maybe 3 months until conclusive news.

News on fracking the last drill could be imminent - a reasonable flow rate could put a firecracker under this share. The company seem confident that they will be successful.