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US Oil & Gas in advanced discussions with potential partners

Last updated: 06:36 28 Feb 2014 GMT, First published: 07:36 28 Feb 2014 GMT

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US Oil & Gas (LON:USOP) told investors it is in advanced discussions with potential investors and strategic partners.

The talks centre on the development of the Hot Creek Valley asset, which includes the sub-commercial Eblana discovery, options for funding and what USOP terms “other matters of potential advantage to the company”.

Good progress is being made, the company said.

Operationally the company has kept busy in recent months with a number of surveys being conducted upon the property. A large reconnaissance geochemical survey spanned the whole Hot Creek Valley acreage, also there were gravity magnetic and geochemical surveys on the Eblana 1 well site specifically.

This year’s work programmes aim to progress the project towards declaring a “commercial find”.

The company also intends to move the project ‘up the value chain’ and reach the point at which proved reserves can be booked.

This work would include drilling more wells and carrying out 3D seismic across the entire Hot Creek Valley acreage, the company said.

USOP said it will need to secure funding for the proposed work programme, as it currently has US$1mln of cash.

As part of its partnering efforts USOP is currently working on a conceptual field development plan for the property. It said it is working closely with consultants Forrest Garb & Associates on this side of the project.

In a separate statement, its financial results for the year to September 30, USOP reported a comprehensive loss of US$1.4mln.

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