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U.S. Oil & Gas plc was formed to exploit the potential for substantial oil and gas finds in one of North America's most prolific oil producing regions, using the most advanced technology available.
U.S. Oil & Gas plc’s (Ticker: USOP) core activities are in the USA, with exploration activity in Nevada where the company holds a large lease acreage and is fully funded to drill three wells.
US Oil & Gas applies for permit to drill its first Nevada well
US Oil and Gas plc (PLUS:USOP) said it has filed an application for a permit to drill its first well on its Hot Creek Valley prospect in Nevada.
Eblana No.1 will be the first of three wells, with drilling set to commence shortly after it receives the green light from the state’s Bureau of Land Management.
Last month the group said its 3D passive seismic had confirmed a “substantial hydrocarbon reservoir” at Hot Creek.
"The results of the survey are expected to minimise uncertainties and reduce the exploration risks associated with our forthcoming drilling campaign," said the company.
The anomaly identified by the 3-D Infrasonic Passive Differential Spectroscopy covers more than 10 square kilometres and shows consistently high reservoir hydrocarbon indicator readings.
The survey has helped US Oil & Gas identify up to ten drilling targets over the whole lease area.
According to the company, of those ten targets, the most promising three are superior to the best target shown by an earlier 2-D IPDS survey.
Nevada isn’t exactly synonymous with big oil and gas finds.
This is rather odd as it sits right on the Rockies cordillera, which runs from Alaska down into the Andes in South America. And hydrocarbons have been found all along its length.
While the state has produced oil, discovering new targets is frustrating and difficult given the geological irregularity of the area.
Only recently has it been discovered it is covered in a blanket of Oligocene volcanic rocks and detritus.
This has buried and sealed oil seeps in the area of most interest, the Great Basin on which eastern Nevada and western Utah sit.
And this pall of debris has rendered conventional 2D and 3D seismic surveys almost useless.
However, a major oil strike has stoked up a lot of interest in the region.
Privately owned Wolverine Gas & Oil discovered the 1.2 billion barrel Covenant Field just over the border in Utah, but within the 400 square mile thrust belt.
This was a game changer for those scouting in the region and it led to something of a land-grab.
