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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.

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.