Proactiveinvestors United Kingdom US Oil and Gas https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom US Oil and Gas RSS feed en Tue, 21 May 2019 05:25:08 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - US Oil & Gas decides to focus on new well plans ]]> https://www.proactiveinvestors.co.uk/companies/news/220203/us-oil--gas-decides-to-focus-on-new-well-plans-220203.html US Oil & Gas Plc (USOP) told investors it has decided to focus on plans for new wells rather than frack the previously drilled Eblana-3 well.

The decision comes after a technical review of the project.

“Recommendations to the board are that it should not proceed with fracking Eblana-3, as it may not offer a sufficiently high chance of producing a well capable of flowing hydrocarbons for an extended period at acceptable rates,” the company said in a statement.

“The decision of the board is therefore not to proceed with the frack but instead to allocate the funds to drilling a further well or wells.”

USOP added: “The latest geological studies carried out by the company indicate that oil in the valley centre is mostly migrating through the lease area of Eblana-1 and Eblana-3 rather than being trapped in large quantities.

“Significantly more prospective locations with possibly superior traps are believed to exist within the company’s lease area to the west and to the east.”

“Subject to funding and regulatory permissions, the company is considering drilling a further well or wells to the west, where the current basin model indicates a structural analogue of Railroad Valley’s Grant Canyon field may be present. 

“Grant Canyon historically included the most productive onshore well in the USA, flowing at over 4,000 bopd.”

USOP noted that more funds will be required for drilling, although cash previously earmarked for Eblana-3 fracking eases the burden.

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Tue, 14 May 2019 08:09:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220203/us-oil--gas-decides-to-focus-on-new-well-plans-220203.html
<![CDATA[News - US Oil & Gas waits for approval to move forward in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/219600/us-oil--gas-waits-for-approval-to-move-forward-in-nevada-219600.html  

What it is doing

US Oil & Gas has submitted an application to frack the Eblana-3 well along with a hydrogeology report.

Talks with the regulator and additional data collection are now ongoing.

“Every effort is being made by the company to satisfy requirements, but no timescale can be offered for the completion of the process,” the company said.

USOP reported a US$1.06mln loss for the twelve months ended 31 July.

In October, US Oil & Gas acquired more acreage in the Hot Creek Valley to increase its total to 73,725 acres at an annual lease cost of US$78,000.

 

Inflexion points

Firm indications that Hot Creek Valley lease area features a major oil system analogous to that in Railroad Valley

Targets for additional drilling to be identified and form new development proposal

Listing on registered exchange

 

 

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Thu, 02 May 2019 06:08:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219600/us-oil--gas-waits-for-approval-to-move-forward-in-nevada-219600.html
<![CDATA[News - US Oil & Gas encouraged at Nevada prospects but continues to wait on fracking approval ]]> https://www.proactiveinvestors.co.uk/companies/news/218291/us-oil--gas-encouraged-at-nevada-prospects-but-continues-to-wait-on-fracking-approval-218291.html US Oil & Gas plc (USOP) continues to work towards the implementation of a fracking programme on the Eblana 3 well, though any timetable is contingent on regulatory approval.

The company, in its full-year financial results statement, said that it also continues planning for corporate development and a new stock market listing though it noted that these plans would only be realised if it can produce oil at commercial quantities.

With attention on the proposed fracking at Eblana, the company explained that it submitted an application for a permit to frack the well along with a hydrogeology report, subsequent dialogue with the regulator and additional data collection are now ongoing.

READ: US Oil & Gas continues in permitting process

“Every effort is being made by the company to satisfy requirements, but no timescale can be offered for the completion of the process,” the company said.

Meanwhile, the company added that it has now integrated the Eblana 3 well data with all other data – including geochemical, VSP, geomagnetic and geophysical data – to generate new targets for its next drilling campaign.

“The company views the results of these latest studies as highly encouraging, supporting the belief that its Hot Creek Valley lease area features a major oil system analogous to that in Railroad Valley,” it added.

“Of considerable importance for the cost of future drills is the finding that the areas now seen as of greatest potential require much shallower wells than have been necessary to date, as both Tertiary and Palaeozoic strata are found to be much closer to the surface.

“Highly prospective targets are clearly emerging from these studies and will form the basis of a multi-well development proposal now being prepared.”

In terms of financial results, USOP reported a US$1.06mln loss for the twelve months ended 31 July. It raised US$2.21mln during the year, completing two share placings.

The company said it is “in a strong financial position to move forward on both operational and corporate fronts.”

At the end of July, it had US$1.9mln of cash and equivalents.

 

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Wed, 10 Apr 2019 07:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218291/us-oil--gas-encouraged-at-nevada-prospects-but-continues-to-wait-on-fracking-approval-218291.html
<![CDATA[News - US Oil & Gas continues in permitting process as it seeks to frack Nevada well ]]> https://www.proactiveinvestors.co.uk/companies/news/216613/us-oil--gas-continues-in-permitting-process-as-it-seeks-to-frack-nevada-well-216613.html US Oil & Gas plc (LON:USOP) told investors that dialogue is continuing with regulatory agencies regarding its permit application for the hydraulic fracturing of the Eblana-3 well in Nevada.

The explorer added that it has undertaken a comprehensive study of local water resources, requiring multiple samples be collected over an extended period and be independently analysed.

A report has been submitted to the authorities, and additional data is now being collected.

“The company wishes to emphasise that the implementation of the fracking plan and the associated operational timetable is contingent on regulatory approvals,” it said in a statement released on Friday.

READ: US Oil & Gas tops up working capital with share sale

“Every effort is being made by the company to satisfy requirements, but no timescale can be offered for the completion of the process.”

USOG also told investors that volumes of data collected in the previous Eblana-3 drilling phase are currently being integrated with all other data sets/

It added: “The company views the results of these latest studies as highly encouraging, supporting the belief that its Hot Creek Valley lease area features a major oil system analogous to that in Railroad Valley.

“Highly prospective targets are clearly emerging from these studies and will form the basis of a multi-well development proposal now being prepared.”

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Mon, 18 Mar 2019 07:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216613/us-oil--gas-continues-in-permitting-process-as-it-seeks-to-frack-nevada-well-216613.html
<![CDATA[News - US Oil & Gas tops up working capital with share sale ]]> https://www.proactiveinvestors.co.uk/companies/news/212381/us-oil--gas-tops-up-working-capital-with-share-sale-212381.html US Oil & Gas Plc (USOP) has raised additional new capital through a placing of new shares.

The Nevada focused explorer announced that it has sold 40,029 shares to private investors at a placing price of 30p per share, to raise US$ 15,651.

It added that the proceeds will give the company additional working capital as it continues to moves towards new well operations.

READ: U.S. Oil & Gas raises US$527,539 of new capital

The company raised US$527,539 through another placing in December and in November the company said it remains intent on seeking a stock exchange listing but said work on the Eblana-3 well remains the priority.

Last year, oil flowed to the surface from the recently drilled Eblana-3 well in Nevada tested at API 34.5.

This oil is believed to come from zone 5 and possibly zone 4. Heavier oil was encountered from zone 3. The zone 5 estimated pay is 258 feet.

The fracking operations will have an additional funding need, the company noted previously.

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Fri, 11 Jan 2019 07:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212381/us-oil--gas-tops-up-working-capital-with-share-sale-212381.html
<![CDATA[News - U.S. Oil & Gas raises US$527,539 of new capital ]]> https://www.proactiveinvestors.co.uk/companies/news/211226/us-oil--gas-raises-us527539-of-new-capital-211226.html U.S. Oil & Gas Plc (USOIL) has raised the equivalent of US$527,539 in new capital through a share placing.

Some 1.36mln new shares were sold at a price of 30p per share.

Last month, US Oil & Gas noted that it remains intent on seeking a stock exchange listing but said work on the Eblana-3 well remains the priority.

READ: US Oil & Gas working on specs for Eblana-3 well in Nevada

In the company’s annual general meeting statement, Brian McDonnell, the company’s chairman and chief executive, reported that the oil that flowed to the surface from the recently drilled Eblana-3 well in Nevada tested at API 34.5.

This oil is believed to come from zone 5 and possibly zone 4. Heavier oil was encountered from zone 3. The zone 5 estimated pay is 258 feet.

As previously announced, subject to regulatory permissions and funding, the well will be subject to a hydraulic fracturing (fracking) operation of short duration, using limited water and no contentious chemicals.

While the company waits for regulatory permissions to come through, technical specifications are currently being drawn up in consultations with reservoir specialists.

The fracking operation will require additional, modest funding of around US$300,000, McDonnell told shareholders.

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Fri, 14 Dec 2018 09:54:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211226/us-oil--gas-raises-us527539-of-new-capital-211226.html
<![CDATA[News - US Oil & Gas working on technical specifications for the Eblana-3 well in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/209735/us-oil-gas-working-on-technical-specifications-for-the-eblana-3-well-in-nevada-209735.html US Oil & Gas PLC remains intent on seeking a stock exchange listing but said work on the Eblana-3 well remains the priority.

In the company’s annual general meeting statement, Brian McDonnell, the company’s chairman and chief executive, reported that the oil that flowed to the surface from the recently drilled Eblana-3 well in Nevada tested at API 34.5.

READ: US Oil & Gas considers fracking at Hot Creek Valley​

This oil is believed to come from zone 5 and possibly zone 4. Heavier oil was encountered from zone 3. The zone 5 estimated pay is 258 feet.

As previously announced, subject to regulatory permissions and funding, the well will be subject to a hydraulic fracturing (fracking) operation of short duration, using limited water and no contentious chemicals.

While the company waits for regulatory permissions to come through, technical specifications are currently being drawn up in consultations with reservoir specialists.

The fracking operation will require additional, modest funding of around US$300,000, McDonnell told shareholders.

The company will be seeking to raise the necessary funds in the near future. Currently, the company has around US$1.2 million cash in hand.

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Wed, 21 Nov 2018 17:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209735/us-oil-gas-working-on-technical-specifications-for-the-eblana-3-well-in-nevada-209735.html
<![CDATA[News - US Oil & Gas considers fracking at Hot Creek Valley ]]> https://www.proactiveinvestors.co.uk/companies/news/207936/us-oil-gas-considers-fracking-at-hot-creek-valley-207936.html US Oil and Gas PLC is working to clear volcanic debris from its Eblana-3 well in Nevada to establish a sustained oil flow and making consider fracking to get the hydrocarbons moving.

In August, US Oil and Gas said hydrocarbon had flowed to surface from the well but subsequent testing failed to sustain this consistently.

Off the six zones encountered, zone 5 was the most promising but oil flow from here was being hindered by volcanic ash and tuff. The plan is to clear the zone by extended pumping.

READ: US Oil & Gas readies Eblana-3 for flow tests

If the well flows, production testing will be carried out but if pumping fails, US Oil & Gas may frack the formation to stimulate production. 

Brian McDonnell, US Oil’s chief executive, said: “High-quality light oil has flowed to the surface from Eblana-3, and our preliminary testing has identified a highly promising and potentially productive zone.

“However, the nature of the Hot Creek Valley geology is posing challenges, and before any production testing can be carried out, we need to determine how best to deal with volcanic ash and tuff.”

Eblana-3 was an appraisal well positioned ‘updip’ and around 1.2 kilometres from the Eblana-1 discovery well.

In March, US Oil raised US$1.15mln, selling 2.75mln to investors at the equivalent of 30p per share and more recently, in April, it raised a further US$290,632.

Eblana-3 is part of the company’s Hot Creek Valley licences.

In October, more acreage in the Hot Creek Valley was added to increase the total to 73,725 acres at an annual lease cost of $78,000. 

Shares in US Oil & Gas are currently not listed on any recognised exchange.

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Fri, 26 Oct 2018 11:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207936/us-oil-gas-considers-fracking-at-hot-creek-valley-207936.html
<![CDATA[News - US Oil & Gas ponders how to deal with volcanic ash at Eblana ]]> https://www.proactiveinvestors.co.uk/companies/news/207932/us-oil-gas-ponders-how-to-deal-with-volcanic-ash-at-eblana-207932.html US Oil and Gas PLC is attempting to clear volcanic debris from its Eblana-3 well in Nevada to establish a sustained oil flow.

In August, US Oil and Gas said hydrocarbon had flowed to surface from the well but today added that subsequent testing failed to sustain this consistently.

Off the six zones encountered, zone 5 was the most promising but oil flow from here was being hindered by volcanic ash and tuff.

The plan is to clear the zone by extended pumping.

If the well flows, production testing will be carried out.

If pumping fails to clear the formation, US Oil & Gas may frack to stimulate production if data indicates a viable reservoir is present.

The company added it had been awarded more acreage in the Hot Creek Valley, which has increased its total acreage 73,725 acres. The total annual lease cost is now $78,000.  

Brian McDonnell, US Oil’s chief executive, said: “High quality light oil has flowed to the surface from Eblana-3, and our preliminary testing has identified a highly promising and potentially productive zone.

“However, the nature of the Hot Creek Valley geology is posing challenges, and before any production testing can be carried out, we need to determine how best to deal with volcanic ash and tuff.”

Shares in US Oil & Gas are currently not listed on any recognised exchange.

Today, the company said it intends to hold its AGM as soon as possible.

Shareholders will be advised of the details as soon as arrangements can be finalised, it added.

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Fri, 26 Oct 2018 10:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207932/us-oil-gas-ponders-how-to-deal-with-volcanic-ash-at-eblana-207932.html
<![CDATA[News - US Oil & Gas readies Eblana-3 for flow tests ]]> https://www.proactiveinvestors.co.uk/companies/news/204505/us-oil-gas-readies-eblana-3-for-flow-tests-204505.html US Oil & Gas Plc (LON:USOP) told investors that preparations are underway for flow testing at the Eblana-3 well at the Hot Creek Valley project in Nevada.

The company, in a stock market statement released on Friday evening, provided a detailed update on operations as it works to clear two of six zones in the well for testing.

Initial operations with a workover rig saw light hydrocarbons flow to the surface, allowing samples to be taken before the rig was ‘stood down’ to allow the installation of rod pumps and pumping has since begun from the Eblana-3 well’s zone five and six.

READ: US Oil and Gas rejigs drilling timetable

It will first clear perforation debris and drilling fluid, pumping will continue until the well is ready for a measured test – at which point, the rig will be redeployed for well testing starting with zone six and possibly zone five, depending upon results and available time remaining in the schedule.

Also, subject to regulatory approvals, the company may also take the opportunity to carry out further perforation clearing operations for some or all of the well’s four additional zones.

The company also noted that it had, in June, successfully bid for an additional acreage contiguous to its existing holdings in Hot Creek Valley.

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Mon, 10 Sep 2018 08:15:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204505/us-oil-gas-readies-eblana-3-for-flow-tests-204505.html
<![CDATA[News - US Oil and Gas rejigs drilling timetable at Hot Creek Valley ]]> https://www.proactiveinvestors.co.uk/companies/news/199869/us-oil-and-gas-rejigs-drilling-timetable-at-hot-creek-valley-199869.html Preparations for drilling the Eblana-3 well at US Oil and Gas PLC’s (LON:USOP) Hot Creek Valley project in Nevada are “well underway”.

Recent log analysis showed potential hydrocarbon pay in multiple intervals of which USOIL had planned to perforate and flow test a selected number. 

But mechanical problems with the rig, on loan from C&J well services, have slowed progress, so the company has had to rejig its timetable.

READ: USOIL back to drilling business in Nevada

The plan now is to use the remaining scheduled days to complete the planned perforation programme while the rig and its operators are still onsite.

But constraints on the availability of the personnel and on the rig itself mean there won’t be enough time for the production test swabbing to be completed.

“The intention, therefore, is to pause operations and carry out the full testing programme after the rig has been rescheduled,” read Friday’s update.

“Shareholders will be informed of planned recommencement when the availability of rig and associated equipment has been confirmed.”

Additional acreage in Hot Creek

In the same announcement, the company revealed it has acquired an additional lease acreage in the valley.

US Oil has leased 11 new lots, totalling 19,639 acres, from the Nevada Bureau of Land Management which border the firm’s current acreage.

The company’s total acreage position in Hot Creek Valley is now 41,860 acres (approx. 169 sq. km.).

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Fri, 29 Jun 2018 10:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199869/us-oil-and-gas-rejigs-drilling-timetable-at-hot-creek-valley-199869.html
<![CDATA[News - U.S. Oil & Gas completes “highly encouraging” Eblana-3 well ]]> https://www.proactiveinvestors.co.uk/companies/news/196904/us-oil-gas-completes-highly-encouraging-eblana-3-well-196904.html U.S. Oil & Gas Plc (USOP), in a statement after Friday’s market close, told investors that the Eblana-3 well has now been drilled and the initial results are described as “highly encouraging”.

The company said the well was drilled down to a depth of 8,200 feet.

Wireline and mud-logs have identified multiple potential hydrocarbon zones, USOIL added.

READ: USOIL back to drilling business in Nevada

It is planned that the well will be tested and this will require an additional rig.

“We are delighted to have completed drilling operations at Eblana-3 safely and efficiently, and I would like to sincerely thank all personnel involved,” said Brian McDonnell, USOIL chief executive.

He added: “Both wireline and mud logging have produced highly encouraging data, indicating potential viable hydrocarbon bearing zones and prompting us to concentrate our efforts and resources on completing and testing this well.

“We are now working hard to ensure that our testing programme is as efficient and effective as possible. We look forward keenly to the next stage in our programme, the perforating and testing of Eblana-3.”

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Mon, 14 May 2018 09:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196904/us-oil-gas-completes-highly-encouraging-eblana-3-well-196904.html
<![CDATA[News - USOIL says better oil price bodes well for frontier exploration ]]> https://www.proactiveinvestors.co.uk/companies/news/195946/usoil-says-better-oil-price-bodes-well-for-frontier-exploration-195946.html U.S. Oil & Gas Plc (USOIL), in its financial results statement, told investors that improved oil prices may bode well for exploration projects in pioneer regions - like its Hot Creek Valley venture in Nevada.

The company recently began operations on the Eblana-3 well, where new drilling aims to follow up a previous discovery. It is located around 1.2 kilometres from the Eblana-1 discovery well and it is designed to “investigate reservoir and hydrocarbon characteristics”.

Also, it is hoped that the well will lift a portion of the company’s estimated contingent resources into proved reserves.

READ: USOIL back to drilling business in Nevada

Eblana-3 will be a vertical well and, according to the well plan, it will be drilled down to a depth of 7,000 feet although the company said drilling could continue deep in order to penetrate Palaeozoic zones. Rig operations are expected to last up to 45 days.

Friday’s financial results statement, however, covers a less active period for the company.

Nonetheless, the company gave insight to its financial position, financial discipline and the background industry conditions.

The pre-revenue explorer reported a US$750,898 loss from continuing operations, and a total US$584,194 comprehensive loss for the year.

It ended the financial period, to July 2017, with US$3.27mln of cash and cash equivalents.

Crude on an upward trajectory

“Recently, the international oil price has shown signs of a sustained recovery and possibly an upward trajectory,” USOIL said.

“In addition, the industry has become increasingly aware of a dearth of new oil finds due to constrained investment during the downturn. 

“This may bode well for exploration projects in pioneer regions such as Nevada.  

It added: “The low potential  cost of conventional production from Hot Creek Valley could also prove an attractive proposition, given that extraction costs for competing shale plays are high, and shale demands continuous capital investment to maintain production.”

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Fri, 27 Apr 2018 10:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195946/usoil-says-better-oil-price-bodes-well-for-frontier-exploration-195946.html
<![CDATA[News - USOIL back to drilling business in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/195378/usoil-back-to-drilling-business-in-nevada-195378.html With the start of appraisal drilling U.S. Oil & Gas PLC (USOIL) has reached a major project milestone and investors in the currently un-listed group will be keenly waiting for the results.

The past drilling at the Hot Creek Valley project unearthed a new oil discovery, though more work was needed to further define and progress the emerging asset.

On Wednesday afternoon, the explorer confirmed that the Hot Creek Valley project, in Nevada, was back in the drilling phase.

READ: USOIL raises additional capital ahead of drill programme

The new Eblana well aims to follow up a previously encountered oil discovery.

Eblana-3 well is described as an appraisal well. It is positioned ‘updip’ and around 1.2 kilometres from the Eblana-1 discovery well.

It is designed to “investigate reservoir and hydrocarbon characteristics”, the presently un-listed explorer said. Also, it is hoped that the well will prove up a portion of the company’s estimated contingent resources into proved reserves.

In the months leading up to the drill programme, USOIL has been supported with new investment. It raised US$1.15mln in March, selling 2.75mln to investors at the equivalent of 30p per share and more recently, in April, it raised a further US$290,632.

All eyes on Eblana

Eblana-3 will be a vertical well and, according to the well plan, it will be drilled down to a depth of 7,000 feet, although the company said drilling could continue deep in order to penetrate Palaeozoic zones.

Rig operations are expected to last up to 45 days.

Once the Eblana-3 well results are in, the company will make a decision about its plans for the subsequent drilling – in this regard it said that the proposed Eblana-6 well location is some 1.4 kilometres from Eblana-3, and the pad is already in place.

Hopes to de-risk the project

“We are pleased to have commenced drilling operations at Eblana-3,” said Brian McDonnell, USOIL chief executive.

“On behalf of myself and the board, I would like to thank our operations team and our drilling contractor Capstar Drilling for their efforts in achieving this milestone with exemplary efficiency.

“As with any well in a new basin, the drill carries risk, but we believe that our intensive programme of data collection and modeling has reduced that risk as far as is possible.

“We look forward to updating shareholders on drilling results in due course.”

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Thu, 19 Apr 2018 13:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195378/usoil-back-to-drilling-business-in-nevada-195378.html
<![CDATA[News - U.S. Oil & Gas starts new exploration drilling in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/195340/us-oil-gas-starts-new-exploration-drilling-in-nevada-195340.html U.S. Oil & Gas Plc (USOIL) has confirmed the start of drilling at the Hot Creek Valley project in Nevada, where the new Eblana well aims to follow up a previously encountered oil discovery.

The Eblana-3 well is described as an appraisal well. It is positioned ‘updip’ and around 1.2 kilometres from the Eblana-1 discovery well.

It is designed to “investigate reservoir and hydrocarbon characteristics”, the presently un-listed explorer said. Also, it is hoped that the well will lift a portion of the company’s estimated contingent resources into proved reserves.

READ: US Oil and Gas making progress at Hot Creek valley

Eblana-3 will be a vertical well and, according to the well plan, it will be drilled down to a depth of 7,000 feet although the company said drilling could continue deep in order to penetrate Palaeozoic zones.

Rig operations are expected to last up to 45 days.

Once the Eblana-3 well results are in the company will make a decision about its plans for the subsequent drilling – in this regard it said that the proposed Eblana-6 well location is some 1.4 kilometres from Eblana-3, and the pad is already in place.

“We are pleased to have commenced drilling operations at Eblana-3,” said Brian McDonnell, USOIL chief executive.

“On behalf of myself and the board, I would like to thank our operations team and our drilling contractor Capstar Drilling for their efforts in achieving this milestone with exemplary efficiency. 

“As with any well in a new basin, the drill carries risk, but we believe that our intensive programme of data collection and modelling has reduced that risk as far as is possible.

“We look forward to updating shareholders on drilling results in due course.”

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Thu, 19 Apr 2018 08:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195340/us-oil-gas-starts-new-exploration-drilling-in-nevada-195340.html
<![CDATA[News - USOIL raises additional capital ahead of drill programme ]]> https://www.proactiveinvestors.co.uk/companies/news/194726/usoil-raises-additional-capital-ahead-of-drill-programme-194726.html U.S. Oil & Gas Plc (LON:USOIL) has raised US$290,632 of new capital, placing 685,314 new shares at a price of 33.99 euro cents.

The company told investors that the injection of funds will provide additional working capital, including the funding of drilling operations.

A total of 685,314 placing shares will shortly be issued, and the company’s total issued shares will number 60.87mln shares.

USOIL is advancing towards a new drilling programme in Nevada. Recently, the company contracted a rig for the programme.

In a statement on March 29, the explorer said it had signed up Capstar drilling (a unit of Oil States International Inc) for up to two wells (Eblana-3 and Eblana-6). It is anticipated that the rig will be mobilised to the company’s Hot Creek Valley project area from April 6 and the company intends to announce details of the planned spudding in due course.

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Wed, 11 Apr 2018 09:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194726/usoil-raises-additional-capital-ahead-of-drill-programme-194726.html
<![CDATA[News - USOP hires contractor for new Nevada wells ]]> https://www.proactiveinvestors.co.uk/companies/news/194127/usop-hires-contractor-for-new-nevada-wells-194127.html US Oil & Gas Plc (LON:USOP) has contracted a rig for a planned drill programme in Nevada.

The company, in a statement released after market close on March 29, the explorer said it had signed up Capstar drilling (a unit of Oil States International Inc) for up to two wells (Eblana-3 and Eblana-6).

READ: USOP lands drill permits for new Nevada oil wells

It is anticipated that the rig will be mobilised to the company’s Hot Creek Valley project area from April 6 and the company intends to announce details of the planned spudding in due course.

“We are pleased to have secured a state-of-the-art drilling rig for our upcoming campaign in Nevada,” said Brian McDonnell, USOP chief executive.

“On behalf of the board, I would like to express our sincere appreciation of shareholders’ support for the rigorously systematic approach the company has taken to the exploration process in a pioneer region of complex geology.

“We believe our extensive and thorough programme of data collection has reduced risk as far as possible as we explore what we hope will prove a major oil field in Hot Creek Valley.”    

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Tue, 03 Apr 2018 08:23:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194127/usop-hires-contractor-for-new-nevada-wells-194127.html
<![CDATA[News - US Oil & Gas raises US$1.15mln ahead of Nevada drilling ]]> https://www.proactiveinvestors.co.uk/companies/news/193850/us-oil-gas-raises-us115mln-ahead-of-nevada-drilling-193850.html US Oil & Gas Plc (USOP) has issued 2.75mln new shares to private investors to raise gross proceeds of US$1.15mln. The placing shares are priced at 30p per share.

The company said that the proceeds will be used for working capital and to fund planned drilling operations in Nevada.

It noted that chief executive Brian McDonnell now holds 3.91mln shares, representing 6.5% of the company.

Planning for new Eblana wells

In January this year, the company said it had been awarded permits to drill the Eblana-3 and Eblana-6 wells while a proposed re-entry to the Eblana-1 well was still under review.

Then in February, the firm said groundworks, including road improvements and access ways, have been completed and the drill pads for Eblana-3 and Eblana-6 have been prepared. A water well has also been sunk, the firm said.

Conductor pipes have been set for both Eblana-3 and Eblana-6 wells.  Both pipes are 20 inches in diameter. The aim is to drill Eblana-3 first and rig mobilisation and spudding of the well will be announced in due course, the firm said.

The company will decide on subsequent operations in the light of results, it added.

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Tue, 27 Mar 2018 07:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/193850/us-oil-gas-raises-us115mln-ahead-of-nevada-drilling-193850.html
<![CDATA[News - US Oil and Gas making progress at Hot Creek valley; aims to drill Eblana-3 well first ]]> https://www.proactiveinvestors.co.uk/companies/news/192111/us-oil-and-gas-making-progress-at-hot-creek-valley-aims-to-drill-eblana-3-well-first-192111.html US Oil and Gas Plc (LON:USOP) updated on progress in Nevada, where it is preparing to drill two new wells in Hot Creek valley.

In January this year, the company said it had been awarded permits to drill the  Eblana-3 and Eblana-6 wells while a proposed re-entry to the Eblana-1 well was still under review.

READ: USOP lands drill permits for new Nevada oil wells

Today, the firm said groundworks, including road improvements and access ways, have been completed and the drill pads for Eblana-3 and Eblana-6 have been prepared. 

A water well has  also been sunk, the firm said.

Conductor pipes have been set for both Eblana-3 and Eblana-6 wells.  Both pipes are 20 inches in diameter.

The aim is to drill Eblana-3 first and rig mobilisation and spudding of the well will be announced in due course, the firm said.

The company will decide on subsequent operations in the light of results, it added.

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Fri, 23 Feb 2018 09:13:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192111/us-oil-and-gas-making-progress-at-hot-creek-valley-aims-to-drill-eblana-3-well-first-192111.html
<![CDATA[News - USOP lands drill permits for new Nevada oil wells ]]> https://www.proactiveinvestors.co.uk/companies/news/190001/usop-lands-drill-permits-for-new-nevada-oil-wells-190001.html US Oil and Gas Plc (LON:USOP) told investors in a statement after Friday’s close that it has been green lighted for two new wells at its Nevada oil project.

The company said it has been awarded permits to drill the planned Eblana-3 and Eblana-6 wells while a proposed re-entry to the Eblana-1 well is still under review.

READ: USOP says it could be drilling in Nevada this year

“In order to make rapid operational progress, the company has decided to move ahead with preparations for drilling Eblana-3 and Eblana-6, both vertical wells,” USOP said.

“The company’s view at this time is that it will drill Eblana-3 first, deciding on subsequent operations in the light of results.”

It added that operations to enhance ground works and surface infrastructure, including the construction of drill pads and access ways, will now begin “as soon as practicable”, and it added that it can now proceed with efforts to finalise terms with a drilling contractor.

Chief executive Brian McDonnell said: “We are delighted to have been awarded two permits to drill. 

READ: US Oil & Gas plc says Hot Creek Valley well applications are in process

“Our technical team has done a superb job planning our wells, and an enormous amount of additional preparatory work with service vendors has also been completed. 

“We mean now to press ahead as quickly as possible with drilling operations. 

“On behalf of myself and the board, I would like to extend a special thanks to US Oil’s shareholders, whose unwavering support has made possible this new and exciting phase in the company’s exploration story.”

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Mon, 15 Jan 2018 07:47:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/190001/usop-lands-drill-permits-for-new-nevada-oil-wells-190001.html
<![CDATA[News - US Oil & Gas plc says Hot Creek Valley well applications are in process ]]> https://www.proactiveinvestors.co.uk/companies/news/189224/us-oil-gas-plc-says-hot-creek-valley-well-applications-are-in-process-189224.html US Oil and Gas Plc(LON:USOP) updated on its drill plans in Nevada, saying that applications to sink three wells in Hot Creek Valley were in train.

The required bonds have been lodged for two wells, it revealed, and once permits are received, drilling will start as soon as availability of service and equipment allows.

READ: US Oil & Gas raises US$748,988 of new capital

The planned wells target updip of the firm's discovery well, Eblana-1.

To expand the firm's understanding of possible structures  in Hot Creek, the 2016 and 2017 soil-gas surveys have been extended, said USOP.

In the earlier surveys, 184 sites were sampled, the majority in the areas of Eblana-1 and the proposed Eblana-3 and Eblana-6 wells.

In recent weeks, an additional 125 sites have been sampled, covering the entire concession area and early results indicate high potential for hydrocarbons throughout the Hot Creek Valley concession, the company said.

READ: USOP says it could be drilling in Nevada this year

USOP also noted it was currently carrying out further geological modelling studies based on all data collected to date, focusing on the wider concession area to inform a comprehensive exploration plan.

 

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Fri, 22 Dec 2017 08:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/189224/us-oil-gas-plc-says-hot-creek-valley-well-applications-are-in-process-189224.html
<![CDATA[News - US Oil & Gas raises US$748,988 of new capital ]]> https://www.proactiveinvestors.co.uk/companies/news/184827/us-oil-gas-raises-us748988-of-new-capital-184827.html US Oil & Gas PLC (LON:USOP) has told investors it has brought in US$748,988 of new capital as a result of an equity placing.

The Nevada-focussed oil junior is issuing some 1.9mln shares priced at 30p per share.

READ: USOP says it could be drilling in Nevada this year

Following the share placing, company chief executive Brian McDonnell holds 3.9mln shares which equates to a 6.8% stake.

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Fri, 29 Sep 2017 09:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/184827/us-oil-gas-raises-us748988-of-new-capital-184827.html
<![CDATA[News - USOP says it could be drilling in Nevada this year ]]> https://www.proactiveinvestors.co.uk/companies/news/176989/usop-says-it-could-be-drilling-in-nevada-this-year-176989.html US Oil & Gas Plc (USOP) could be drilling its Nevada oil project in just a matter of months, the company has revealed.

In a statement following its AGM, held on April 26, the company said a timetable for drilling to start in August or September would be a “reasonable expectation”.

The programme does, however, remain subject to the company securing the necessary permissions in Nevada.

“Drilling permits will be required for both wells,” USOP said.

“Preparatory work for permit applications, including engineering details, is near complete, and applications will be submitted to regulatory authorities in the near future.”

USOP added that it is now in the process of discussing the programme with drilling contractors.

Candidly, the presently un-listed company noted that it had insufficient funds to pay for both the drill programme as well as cover the costs of listing its equity on a recognised stock exchange.

“If sufficient further funds are raised and/or when drilling is completed, the Board will reconsider the listing option,” it added.

What are USOP’s drilling plans?

USOP says it has enough money to drill two wells whilst also preserving twelve months’ worth of working capital. That said, USOP has put plans in place for three wells.

It intends to advance two wells, Eb-1a and Eb-3, which will test the Eblana discovery.

Eb-1a is a deviated side-track from the group’s previously drilled well, and it will be drilled from the Eblana-1 well pad. The separate Eb-3 well will be drilled vertically.

The third well, which is not scheduled to be drilled in the upcoming programme, is described as being sited optimally for Paleozoics targets as well as the possibility of penetrating Tertiary zones of interest.

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Thu, 27 Apr 2017 08:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/176989/usop-says-it-could-be-drilling-in-nevada-this-year-176989.html
<![CDATA[News - USOP raises additional working capital ]]> https://www.proactiveinvestors.co.uk/companies/news/176656/usop-raises-additional-working-capital-176656.html Nevada focussed oil junior US Oil & Gas Plc (USOP) has raised US$295,713 of new capital via a placing of shares to private investors.

A total of 869,744 new ordinary shares were issued at a placing price of 0.27p, which according to the company equates to a 0.3199 euro premium per share.

The company told investors that the placing proceeds will be used as working capital.

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Thu, 20 Apr 2017 10:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/176656/usop-raises-additional-working-capital-176656.html
<![CDATA[News - USOP confirms investors can buy and sell its shares again ]]> https://www.proactiveinvestors.co.uk/companies/news/175201/usop-confirms-investors-can-buy-and-sell-its-shares-again-175201.html US Oil & Gas Plc (USOP) has confirmed that its shares are now included on Asset Match, a ‘matched bargain’ trading platform that acts as a marketplace for private UK companies.

The US focussing oil junior was previously listed on what Plus Markets (subsequently relaunched as ISDX and now branded NEX) as well as another alternative exchange that was regulated by the Danish authorities.

It ceased to be ‘tradable’ on an exchange in mid-2015.

The company said it has not had contact with Asset Match and it did not apply for its shares to be added to the platform.

USOP instead emphasised that its intention continues to be to seek a trading facility on a recognised investment exchange (RIE).

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Wed, 22 Mar 2017 08:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/175201/usop-confirms-investors-can-buy-and-sell-its-shares-again-175201.html
<![CDATA[News - US Oil & Gas says consultant has update its oil in place estimates for Nevada project ]]> https://www.proactiveinvestors.co.uk/companies/news/172978/us-oil-gas-says-consultant-has-update-its-oil-in-place-estimates-for-nevada-project-172978.html US Oil & Gas PLC (LON:USOP) said that consultants Baker Hughes has updated its original oil-in-place estimates for the Tertiary zones in the area updip to the Eblana-1 well in Nevada.

Its ‘low case’ oil in place estimate is now 283mln barrels; the ‘best case’ is 1.03bn and the ‘high case’ is now almost 2bn barrels.

The recovery factor is put at 20% giving recoverable resources of 57mln barrels, 207mln barrels and 400mln barrels for the low, best and high case scenarios respectively.

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Fri, 10 Feb 2017 08:25:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/172978/us-oil-gas-says-consultant-has-update-its-oil-in-place-estimates-for-nevada-project-172978.html
<![CDATA[News - US Oil & Gas raises new equity ]]> https://www.proactiveinvestors.co.uk/companies/news/172559/us-oil-gas-raises-new-equity-172559.html US Oil & Gas PLC (USOP) has confirmed that 1.7mln new shares have been issued through a share placing.

The new capital was raised at a price of 27p per share to raise US$594,498.

Additionally, the company said it is also planning an open offer share sale that will give existing shareholders the opportunity to buy additional shares.

Last month the company said a large number of shareholders had contacted the company to express an interest in acquiring further shares.

Before that, USOP released a project update that outlined new estimates of the resource potential at its primary asset. It revealed a ‘best case’ estimate that sees more than 1bn barrels of originally in place oil at its Eblana asset in Nevada.

The company told investors that a structural modelling of the project, undertaken by Baker Hughes, is complete and its technical team are now studying the findings.

It also reported Baker Hughes's revised oil-in-place estimates. The consultant assessed four zones, which together are referred to as the Tertiary Eblana Structure, as putting the range of in-place resources between 274mln to 1.89bn barrels, with the ‘best case’ estimate set at 1.017bn barrels.

USOP said that total recoverable contingent oil resources, based on a 20% recoverability factor, ranged between 54.8mln to 378.8mln barrels, with a ‘best case’ estimate of 203.4mln barrels.

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Thu, 02 Feb 2017 10:25:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/172559/us-oil-gas-raises-new-equity-172559.html
<![CDATA[News - USOP says its shares are in demand ]]> https://www.proactiveinvestors.co.uk/companies/news/171721/usop-says-its-shares-are-in-demand-171721.html US Oil & Gas Plc says its shares are in demand and it is considering ways to give investors the opportunity to increase their shareholdings.

In a brief stock market statement, USOP said: “A large number of shareholders have contacted the company to express an interest in acquiring further shares.  As a result, the company is considering the most efficient and equitable means of enabling this.    

“Due to the amount of correspondence, the company will not be able to answer individual queries on this matter, but will announce details of its planned way forward by regulatory news release in due course.”

Billion barrels seen in Nevada

The latest statement from USOP comes just a few days after the junior explorer released a project update which outlined new estimates of the resource potential at its primary asset.

Last week, it revealed a ‘best case’ estimate that sees more than 1bn barrels of originally in place oil at its Eblana asset in Nevada.

The company told investors that a structural modelling of the project, undertaken by Baker Hughes, is complete and its technical team are now studying the findings.

It also reported Baker Hughes revised oil in place estimates. The consultant assessed four zones which are together referred to as the Tertiary Eblana Structure as puts the range of in place resources between 274mln to 1.89bn barrels, with the ‘best case’ estimate set at 1.017bn barrels.

USOP said that total recoverable contingent oil resources, based on a 20% recoverability factor, ranged between 54.8mln to 378.8mln barrels, with a ‘best case’ estimate of 203.4mln barrels.

In a statement, the company added: “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.”

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Tue, 17 Jan 2017 08:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/171721/usop-says-its-shares-are-in-demand-171721.html
<![CDATA[News - USOP sees over 1bn barrels in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/171609/usop-sees-over-1bn-barrels-in-nevada-171609.html US Oil & Gas Plc (USOP) today outlined a ‘best case’ estimate that sees more than 1bn barrels of originally in place oil at its Eblana asset in Nevada.

The company told investors that a structural modelling of the project, undertaken by Baker Hughes, is complete and its technical team are now studying the findings.

It also reported Baker Hughes revised oil in place estimates. The consultant assessed four zones which are together referred to as the Tertiary Eblana Structure as puts the range of in place resources between 274mln to 1.89bn barrels, with the ‘best case’ estimate set at 1.017bn barrels.

USOP said that total recoverable contingent oil resources, based on a 20% recoverability factor, ranged between 54.8mln to 378.8mln barrels, with a ‘best case’ estimate of 203.4mln barrels.

In a statement, the company added: “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.”

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Fri, 13 Jan 2017 11:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/171609/usop-sees-over-1bn-barrels-in-nevada-171609.html
<![CDATA[News - Oil price recovery sets US Oil and Gas up for “exciting” 2017 ]]> https://www.proactiveinvestors.co.uk/companies/news/170926/oil-price-recovery-sets-us-oil-and-gas-up-for-exciting-2017-170926.html US Oil and Gas PLC (OTCMKTS:USLGF) has told investors that the recent recovery in oil prices has left it “well-positioned” to kick on in the New Year.

Earlier this year the oil price dipped below US$30 a barrel, but it has since improved and has remained fairly stable at more than US$50 over the past couple of months.

“With the recent partial recovery in the oil price and perceived stabilisation in the market, sentiment towards exploration has improved markedly,” the company said.

On top of the macro improvements, US Oil and Gas said it is “tremendously encouraged” by the progress being made at its Eblana-1 well at Hot Creek Valley in Nevada.

It added that the re-entering of Eblana is the “next and most exciting stage” of its exploration.

For the year to 31 July, US Oil and Gas posted a comprehensive loss of US$772,000, compared to US$502,000 a year earlier.

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Fri, 23 Dec 2016 09:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/170926/oil-price-recovery-sets-us-oil-and-gas-up-for-exciting-2017-170926.html
<![CDATA[News - US Oil and Gas encouraged by latest Nevada work ]]> https://www.proactiveinvestors.co.uk/companies/news/168497/us-oil-and-gas-encouraged-by-latest-nevada-work US Oil & Gas PLC (LON:USOP) said it is considering a re-entry of the Eblana-1 well in Nevada after data review work carried out by Halliburton.

The company said it was sufficiently funded to drill the Tertiary zones to the east identified by both the Eblana #1 drill results in 2014 and recent Halliburton VSP data processing. 

It added it is considering a further capital raise for some or all of the following: contingencies, working capital, an additional drill to penetrate the Palaeozoics and a possible stock market listing.

Drilling the Palaeozoic zones may also require further regulatory permissions, although these are expected to take the form of sundry notices, and are not anticipated to cause significant delay.  

Brian McDonnell, chief executive, said: “We are tremendously excited and encouraged by what the data is showing us. 

“Our team has worked intensively with both Halliburton and Baker Hughes to process, analyse and model an enormous amount of data, deploying a battery of the most advanced techniques. 

“We are now in the phase of structural modelling and discussions with drill contractors, while considering the various options open to us for our anticipated re-entry of Eblana #1.”

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Thu, 03 Nov 2016 16:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/168497/us-oil-and-gas-encouraged-by-latest-nevada-work
<![CDATA[News - US Oil & Gas raises £320,000 through placing ]]> https://www.proactiveinvestors.co.uk/companies/news/128833/us-oil-gas-raises-320000-through-placing-128833.html US Oil & Gas PLC (LON:USOP) has placed 1.2mln ordinary shares with private investors, raising around US$414,715 (£312,895).

The resources exploration group said the proceeds of the placing will be used to provide additional working capital.

‘We are delighted with the results of the recent placing and with the tremendous support for the company shown by new investors and existing shareholders. We have achieved our fundraising target, although recent currency fluctuations have had a negative impact,” said chief executive Brian McDonnell.

The group also provided an update from the vertical seismic profiling at the Halliburton project. It said the large amounts of data generated may take several more weeks for a full analysis to be completed. 

“We are now pressing ahead with our exploration agenda.  Our expert technical team is confident that together with Halliburton they are currently laying the best possible foundation for the next phase of exploration in Hot Creek Valley,” added McDonnell.

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Mon, 01 Aug 2016 07:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/128833/us-oil-gas-raises-320000-through-placing-128833.html
<![CDATA[News - USOP says data programmes nearing completion in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/127277/usop-says-data-programmes-nearing-completion-in-nevada-127277.html US Oil & Gas Plc (USOP) has told investors that it data collection for a vertical seismic profile (VSP) study is nearing completion at its oil project in Nevada.

The programme is being carried out by oil field services major Halliburton.

Additionally, the company said that new gravity and near-surface geochemical data have also been acquired.

The newly gathered data will allow further development of the geophysical and geological models of the area around the Eblana 1 well location ahead of the planned re-entering of the well.

USOP expects the processing, analysis and integration of data to take several weeks.

Brian McDonnell, USOP chief executive, said: “The quality of the data collected appears to be excellent, and we anticipate that our geophysical model and the identification of future drilling targets will be significantly enhanced by this effort.  

“Processing, analysis and modeling now begins and will involve Halliburton working together with our technical team to produce the clearest possible picture of our target structures.”

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Mon, 20 Jun 2016 07:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/127277/usop-says-data-programmes-nearing-completion-in-nevada-127277.html
<![CDATA[News - US Oil & Gas raises around US$800,000 via investor share sale ]]> https://www.proactiveinvestors.co.uk/companies/news/124942/us-oil-gas-raises-around-us800000-via-investor-share-sale-124942.html US Oil & Gas (LON:USOP) has raised just shy of US$800,000 through its open offer share sale to existing shareholders.

In a statement USOP confirmed that the open offer closed yesterday and the company received acceptances for some 1.69mln new shares, representing around 15.75% of the new shares on offer.

USOP shareholders were able to buy one additional share, priced at 27p, for every four existing shares they owned.

The company also confirmed that chief executive Brian McDonnell participated in the funding. And, also the company said that some treasury shares were also sold alongside the open offer, raising US$37,346.

In total, USOP raised US$771,469 in the share sales.

The company confirmed - following similar comments last month - that it is currently exploring the option of raising further funds via a placing of shares to new investors, and it was now discussing the matter with its advisors and the potential investors.

“That shareholders continue to support the company in current market conditions is a sign of real confidence in our prospect in Hot Creek Valley,” McDonnell said.

“With the immediate future of the company secured, we can now move on to the next phases of our corporate and operational agendas.”

USOP would like to drill a new well at the Hot Creek Valley project, in Nevada, via a re-entry of the previously drilling Eblana discovery well, and it estimates the cost of drilling a well at as little as US$1.2mln.

-corrected APRIL 20-

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Tue, 19 Apr 2016 07:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/124942/us-oil-gas-raises-around-us800000-via-investor-share-sale-124942.html
<![CDATA[News - USOP reset and ready for re-entry at Nevada oil project ]]> https://www.proactiveinvestors.co.uk/companies/news/124268/usop-reset-and-ready-for-re-entry-at-nevada-oil-project-124268.html A planned funding and proposals for a new work programme at a prospective oil field in the Nevada desert has brought US Oil and Gas Plc back into focus for the company’s large retail investor base.

On the face of it, the company - which is at the moment unlisted - has appeared to be in hibernation. But behind the scenes, chief executive Brian McDonnell has been working through what describes as a very busy period.

The Eblana well, drilled in 2013, discovered oil in a previously untested area, though engineering challenges - the sort inherent in ‘wildcat’ drilling – caused frustration as the well couldn’t be fully tested and flow rates couldn’t be precisely quantified.

That oil flowed to surface was a silver-lining that many investors overlooked.

With USOP’s apparent period of inactivity coming to an end, however, McDonnell strikes an enthusiastic tone as he talked Proactive Investors through plans that, if successful, promise to add some materiality to Hot Creeks Valley’s much speculated upon potential.

The plan, subject to funding, is to re-enter Eblana with an adapted well design to properly test the zones that flowed before and to go deeper  to hit other higher potential zones.

If successful, the promise is of a possible commercial flow and the raising of USOP’s 19 million barrels of Contingent Resources to Proved Reserves, enormously enhancing the company’s asset base.

 

New times, and a very different US oil market

 

USOP’s apparent slumber coincided with the company’s search for an industry partner to intensify its exploration effort in Hot Creek Valley by bringing in substantial resources. 

The aim was to fund several further wells and hopefully bring the project to commerciality. But no matter how promising, a Nevada discovery was a difficult sell in 2013-2014 at the height of the shale boom. 

As McDonnell explains it, pitching higher risk frontier or ‘discovery’ plays to shale-focussed US oil execs was difficult no matter how great the potential - as projects in the vast Eagle Ford or Bakken presented lower-hanging fruit.

“Shale offered a low-risk option in convenient, well-understood regions,” he said.  “Now, after the price crash, the boot is on the other foot.  Shale looks the riskier option, and pioneer plays with potentially large conventional resources and low-cost uplift look a less risky proposition.”

McDonnell believes the oil at Hot Creek Valley has the potential to be economically viable, and  could be significantly cheaper to extract than the currently squeezed shale plays, with the cost to the refinery possibly as low as US$5 per barrel as compared to US$40 or more for shale.

When the dust finally settles in the US oil market, McDonnell believes those left standing will look towards conventional projects rather than shale for new opportunities.

“Shale will continue to look vulnerable to the oil price in a way that conventional oil assets like ours will not.  Conventional oil will be the first to capitalise on an oil price recovery when that comes,” McDonnell said.

Crucially, distress in the oil field services industry has caused project costs to plummet, which further tips the risk profile in USOP’s favour.  USOP estimate the cost of drilling a well at as little as US$1.2mln, which suddenly puts the reins of control back in the company’s hands.

It means that, for the time being at least, the Hot Creek Valley property can be advanced without a partner.  So, in the meantime, the plan is very much to pursue operations in the field.

 

A re-entry to the previously drilled Eblana well is planned

 

On March 22, USOP confirmed its intention to re-enter the Eblana-1 well. The company said the existing well, originally drilled in 2013, will be plugged back to 3,220 feet and new casing will be run.

New drilling will then see the well deepened to a target depth of up to 13,000 feet. Additionally, USOP told investors that it may also carry out sidetrack drilling, depending on the results of a planned vertical seismic profiling (VSP) survey.

Subsequently, on March 31, USOP told investors that it had now secured all permits needed for its proposed re-entry to the previously drilled Eblana well. And it now intends to conditionally hire a drilling contractor.

 

Possible new shareholders and a possible new listing

 

To implement those plans, USOP is raising money. The funding plans that could see USOP raise as much as £3.8mln of new capital will take place in two parts.

The company is currently in discussion with institutional investors in relation to a possible share placing to raise up to £810,000. And separately, it has launched an open offer which will give existing shareholders the opportunity to raise as much as £2.9mln.

The deadline for the open offer was extended by 14 days at the request of brokerages, and as a result the deadline is now April 15.

McDonnell is hopeful that the group’s large retail investor base, a near 4,000 strong group, will support the project.

There is, he says, a huge amount of interest in the company and its prospects in the new oil price environment.

But, for everything to be considered fully ‘back on track’ many of its backers will feel USOP will have to be again on a recognised stock exchange. McDonnell agrees, though he emphasises that the priority has to be securing the financial future of the company and pushing ahead with operations at Hot Creek Valley.

 In the meantime, a number of appointments including board members and advisors, and other changes in the background, have been put in place in preparation for a planned listing.

”The most important thing over the last months has been to come up with a viable operational plan regardless of the oil price and industry sentiment.

“We have tremendous expertise at our disposal and world-class understanding of the geology of the region, in particular the volcanics that have caused so many problems for explorers in the past. 

“Oil exploration is never without risk, and in the end  the drill bit will decide.  But we believe we have done everything possible to minimise that risk and maximise our chances of success.” 

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Thu, 31 Mar 2016 11:29:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/124268/usop-reset-and-ready-for-re-entry-at-nevada-oil-project-124268.html
<![CDATA[News - USOP secures permits for Nevada well re-entry ]]> https://www.proactiveinvestors.co.uk/companies/news/124254/usop-secures-permits-for-nevada-well-re-entry-124254.html U.S. Oil & Gas Plc (USOP) has told investors that it has now secured all permits needed for its proposed re-entry to the previously drilled Eblana well, in Nevada.

In a statement the company said the State of Nevada Division of Minerals (NDOM) and the Bureau of Land Management of the U.S. Dept. of the Interior (BLM) have both approved the permits.

The company said it will now proceed with modelling and logistics planning ahead of a vertical seismic profiling (VSP) survey.

It will also conditionally appoint a drilling contractor.

Earlier this month, USOP confirmed its intention to re-enter the Eblana-1 well, at the Hot Creek Valley project in Nevada.

The company said the existing well, originally drilled in 2013, will be plugged back to 3,220 feet and new casing will be run.

New drilling will then see the well deepened to a target depth of up to 13,000 feet, it added.

Additionally, USOP told investors that it may also carry-out sidetrack drilling, depending on the results of a planned VSP survey.

These plans are subject to USOP securing new funding.

The company previously announced funding plans that could see it raise as much as £3.8mln of new capital.  The proposed funding comes in two parts. USOP is currently in discussion with some institutional investors in relation to a possible share placing to raise up to £810,000.

 Separately, it has launched an open offer which will give existing shareholders the opportunity to raise as much as £2.9mln. The deadline for the open offer is April 15.

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Thu, 31 Mar 2016 08:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/124254/usop-secures-permits-for-nevada-well-re-entry-124254.html
<![CDATA[News - US Oil & Gas Plc confirms plans to re-enter Eblana well ]]> https://www.proactiveinvestors.co.uk/companies/news/123968/us-oil-gas-plc-confirms-plans-to-re-enter-eblana-well-123968.html Tue, 22 Mar 2016 11:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/123968/us-oil-gas-plc-confirms-plans-to-re-enter-eblana-well-123968.html <![CDATA[News - USOP reveals plans for funding and new oil wells in Nevada ]]> https://www.proactiveinvestors.co.uk/companies/news/123573/usop-reveals-plans-for-funding-and-new-oil-wells-in-nevada-123573.html Nevada focused explorer US Oil & Gas (USOP) has unveiled plans that could see it raise as much as £3.8mln of new capital.

USOP, depending upon how much it can raise, plans to use the money to drill new wells with a view to establishing reserves from discovered oil resources at the Hot Creek Valley lease area, where it previously drilled the Eblana-1 exploration well back in 2012/13.

The funding, if successful, would also help the company’s efforts to establish a new listing on a suitable stock market (following the closing of GXG Market, upon which it previously traded).

It forms part of USOP’s plan to take advantage of currently low contactor costs, resulting from weak crude prices, in order to advance the Hot Creek asset and provide a shot in the arm for a partnering process that first began in 2014.  The company believes that it can now drill wells for around $1.2m dollars each.

“Given the turmoil afflicting the oil sector at present, and the difficulty in finalising an industry partnership in the current conditions, the company has decided to press on to drill independently if sufficient funds can be raised,” chief executive Brian McDonnell said in a statement.

“We remain confident in the viability and value of our asset as a conventional resource with, potentially, extremely low uplift costs.  As a proposition, our prospect compares very favourably with the shale plays fashionable up until the oil price crash.

“We believe that this advantage will, as market sentiment recovers, be clearly recognised by the wider industry.”

The proposed funding comes in two parts. USOP is currently in discussion with some institutional investors in relation to a possible share placing to raise up to £810,000.

Separately, it has launched an open offer which will give existing shareholders the opportunity to raise as much as £2.9mln.

Existing shareholders will be able to purchase 1 new share for every 4 shares they currently own.

For the open offer to proceed USOP will need to have received commitments for at least £300,000.

USOP cautioned that failure to meet the minimum threshold in the open offer could potentially compromise its ability to continue as a going concern.

In financial results for the twelve months to July 31 2015, released on Thursday evening, USOP reported cash and cash equivalents of $359,000 and said it was debt-free. The company reported a $501,958 loss for the year.

Previously, in December, the company announced it had hired Irish accountancy and consultancy firm LHM Casey McGrath as an advisor to assist in its efforts to list on a recognised stock exchange.

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Fri, 11 Mar 2016 11:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/123573/usop-reveals-plans-for-funding-and-new-oil-wells-in-nevada-123573.html
<![CDATA[News - US Oil & Gas to seek listing on fully-regulated exchange ]]> https://www.proactiveinvestors.co.uk/companies/news/109802/us-oil-gas-to-seek-listing-on-fully-regulated-exchange-109802.html US Oil & Gas (GXG:USOP) has reassured its shareholders it is seeking to transfer its listing to a fully regulated exchange.

The company’s shares are currently listed on the GXG market, and it had been expected that the listing would transfer seamlessly over to The Channel Islands Securities Exchange Limited (CISE) this month as a result of the sale of GXG Markets to CISE; that proposed sale fell through at the end of last month, leaving US Oil & Gas with a pressing need to make alternative arrangements.

The Nevada-focused firm informed shareholders that, while it is pulling out all of the stops to seek a listing on an alternative regulated exchange, such a move requires a considerable amount of effort on the part of the company, including the preparation of audited interim accounts, which may take some time to complete.

In the meantime, the company is exploring the option of listing on other trading platforms to provide continuity.

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Mon, 10 Aug 2015 07:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/109802/us-oil-gas-to-seek-listing-on-fully-regulated-exchange-109802.html
<![CDATA[News - USOP - GXG Markets to be sold to Channel Islands exchange ]]> https://www.proactiveinvestors.co.uk/companies/news/109309/usop-gxg-markets-to-be-sold-to-channel-islands-exchange-109309.html Nevada- focused US Oil and Gas (GXG:USOP)  revealed that GXG Markets, where it is listed, is to be sold to The Channel Islands Securities Exchange Limited (CISE).

Current listings that meet CISE's listings and disclosure rules will have the opportunity to go over to CISE by August 18 this year, said USOP.

It added that its board "welcomed" the proposed development as potentially offering shareholders the chance to continue trading in the firm with minimal disruption.

"The company expects that GXG Markets and/or CISE will communicate further details in due course, and the board of US Oil & Gas will then be able to take an informed view on the implications for the company and shareholders of the proposed arrangements," it said in a brief stock market statement.

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Fri, 24 Jul 2015 08:03:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/109309/usop-gxg-markets-to-be-sold-to-channel-islands-exchange-109309.html
<![CDATA[News - US Oil & Gas director O’Callaghan retires ]]> https://www.proactiveinvestors.co.uk/companies/news/108172/us-oil-gas-director-ocallaghan-retires-108172.html US Oil & Gas (LON:USOP) has announced the retirement of director Paul O’Callaghan.

O’Callaghan joined the company in 2012, and he will continue to working with the company in the future on a consultancy basis.

Chief executive Brian McDonnell said O’Callaghan had made an outstanding contribution to the company.

“On behalf of the board and shareholders, I want to thank him for his insight and unwavering support for the company and wish him well in his retirement,” McDonnell added.

“We look forward to consulting with Paul and continuing to benefit from his experience."

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Fri, 19 Jun 2015 08:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/108172/us-oil-gas-director-ocallaghan-retires-108172.html
<![CDATA[News - US Oil & Gas shares restart trading ]]> https://www.proactiveinvestors.co.uk/companies/news/107340/us-oil-gas-shares-restart-trading-107340.html Trading in Nevada focussed explorer US Oil & Gas (USOP) has this morning resumed on the GXG Market.

It comes after an independent due diligence report confirmed that the company had not misled the market.

USOP said anonymous internet-based allegations, which is believes prompted the GXG Market’s probe were “contrived, vexatious and utterly without foundation.”

The investigation examined the company’s history since 2011 and market communications over a two year period, USOP added.

USOP chief executive Brian McDonnell said the company can now “move forward vigorously” with its corporate and exploration agendas.

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Tue, 26 May 2015 09:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/107340/us-oil-gas-shares-restart-trading-107340.html
<![CDATA[News - US Oil & Gas moves to clarifiy due diligence issues ]]> https://www.proactiveinvestors.co.uk/companies/news/67197/us-oil-gas-moves-to-clarifiy-due-diligence-issues-78383.html US Oil and Gas (GXG:USOP) has issued a statement to clarify some matters related to the due diligence report being prepared by stock market GXG.

Shares in USOP were suspended on the Danish market in December. At the time USOP welcomed the report but said today this did not mean it was prejudging its content or effects. 

“The Due Diligence Report requested by GXG Markets has been request pursuant to the on-going regulatory issue and investigation undertaken by the GXG Regulatory Team as a part of the investigation. 

“Any lifting of the company's suspension of its shares is dependent on the findings by the GXG Regulatory Team in the on-going regulatory investigation. 

“The Due Diligence Report serves as a part of that investigation and will be part of the grounds on which the GXG Regulatory Team concludes its findings.”

The company added that contrary to internet speculation it was only informed of the name of its Due Diligence partner by GXG on 5 March.

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Wed, 18 Mar 2015 09:10:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/67197/us-oil-gas-moves-to-clarifiy-due-diligence-issues-78383.html
<![CDATA[News - USOP boss McDonnell says exchange probe will put an end to ‘campaign of vilification’ ]]> https://www.proactiveinvestors.co.uk/companies/news/66636/usop-boss-mcdonnell-says-exchange-probe-will-put-an-end-to-campaign-of-vilification-77755.html US Oil & Gas (GXG:USOP) boss Brian McDonnell has told investors that a probe by exchange operator GXG Markets will finally put an end to what he calls a “sustained campaign of vilification and defamation” against the company.

GXG suspended trading in USOP shares in December due to concerns there was a disorderly market.

The share suspension was, according to USOP, connected to complaints which the company says included “anonymous letters, internet comment and the breaking of unspecified market rules.”

Documents were submitted by USOP in December and earlier this month GXG announced it was working on a due diligence report on the company.

In today’s results statement USOP said it welcomes the due diligence exercise and it hopes the process is expedited in the interest of the company and its shareholders.

Separately, McDonnell also said the turbulence in oil the oil sector had “entirely vindicated” the group’s strategy of minimising costs and conserving cash.

The Nevada focussed exploration minnow has endured an “enormous burden” due to this approach, he added.

According to McDonnell the frugal approach has delayed certain desirable developments in terms of recruitment and company infrastructure, but he says it has “undoubtedly contributed to the company's financial stability to date.”

USOP today reported a US$491,591 loss for the twelve months to September 30, of which US$429,025 were administrative expenses.

The company had US$519,240 of cash and equivalents, and it believes it has sufficient working capital for 12 months.

McDonnell adds that talks to bring in a partner for USOP’s Hot Creek Valley project have continued despite the turbulent industry environment.

The plan is for a farm-out of the asset to enable he next phase of work.

In today’s results statement, McDonnell said: “The overriding company objective remains to drill further wells in Hot Creek Valley, to progress the project towards a commercial find, to move our Contingent Resources further up the value chain to proved reserves, to further delineate the extent and size of the oil system, and to achieve an industry partnership allowing the further development of the asset.”

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Fri, 27 Feb 2015 09:37:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/66636/usop-boss-mcdonnell-says-exchange-probe-will-put-an-end-to-campaign-of-vilification-77755.html
<![CDATA[News - US Oil & Gas “unreservedly welcomes” exchange operator's due dilligence ]]> https://www.proactiveinvestors.co.uk/companies/news/66120/us-oil-gas-unreservedly-welcomes-exchange-operators-due-dilligence-77180.html US Oil & Gas (LON:USOP) says it unreservedly welcomes a due diligence exercise being conducted by exchange operator GXG Markets.

USOP hopes the process is expedited in the interests of both the company and its shareholders, it added.

“The company believes that the GXG investigation was prompted by allegations made to GXG, including anonymous and Internet allegations, and expects that the due diligence report will effectively and finally put an end to a sustained campaign of vilification and defamation,” USOP said in a statement.

The GXG market suspended trading the company’s shares in December.

USOP has also now decided to put on hold plans for its extraordinary general meeting while share trading remains suspended. It will, however, hold a shareholder meeting in due course subject to relevant processes and procedures.


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Wed, 11 Feb 2015 10:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/66120/us-oil-gas-unreservedly-welcomes-exchange-operators-due-dilligence-77180.html
<![CDATA[News - USOP shares suspended on GXG Market ]]> https://www.proactiveinvestors.co.uk/companies/news/64615/usop-shares-suspended-on-gxg-market--75467.html The GXG market has suspended the shares of US Oil & Gas (LON:USOP) with effect from today (December 16).

The suspension appears to follow allegations from a group of shareholders concerning the "veracity of the company's" statements, the firm said.

"The company vigorously denies the allegations and stands by its statements," USOP added in Tuesday's regulatory statement.

GXG has requested clarification be sent to them by January 5 2014 (sic), which USOP said it assumed was supposed to read 2015.

The company responded to GXG by addressing as many concerns as possible within the minimal time allowed and requested 24 hours to respond fully to the issues raised.

"The company will do everything in its power to reassure GXG Markets and potential industry partners with whom it is currently in discussions regarding the wholly unfounded and unjust nature of the allegations made," it said.

The US focused oil firm added that as soon as the relevant procedures allow, it will call an EGM where it will present a proposed programme of action for shareholders to consider.

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Tue, 16 Dec 2014 14:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/64615/usop-shares-suspended-on-gxg-market--75467.html
<![CDATA[Media files - US Oil & Gas CEO: We’re moving as fast as we can ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/2705/us-oil-gas-ceo-were-moving-as-fast-as-we-can-2705.html Fri, 19 Sep 2014 10:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/2705/us-oil-gas-ceo-were-moving-as-fast-as-we-can-2705.html <![CDATA[News - US Oil & Gas asks investors to be patient as partnering talks continue ]]> https://www.proactiveinvestors.co.uk/companies/news/61913/us-oil-gas-asks-investors-to-be-patient-as-partnering-talks-continue-72417.html US Oil &Gas (LON:USOP) told investors it is still engaged in current and ongoing partnership talks for its project in Nevada.

It also, however, said that it may not fulfil its previously envisaged schedule for drilling activities at the project in the fourth quarter of this year.

Those plans were contingent upon securing a partner and/or securing funding arrangements, which now may not happen in time.

The timetable for the current partnership discussions is not under the control of USOP, the company said in a statement.

USOP also told investors that surveying plans have been adapted with an intended programme to locally assess the area around the Eblana 1 well now being absorbed into a larger programme subsequent to a partnership being secured.

In a statement chief executive Brian McDonnell asked investors for the benefit of patience.

He said: “We are currently engaged in active discussion of several proposals with potential partners, and these discussions include further survey activity on our Hot Creek Valley property.

“We are keen that the company's programme, designed to raise our contingent resources to proved reserves, moves forward as quickly as possible, and we are confident that good progress is being made.

“The board understands that this process has taken longer than many had hoped but ask that shareholders give the company the benefit of patience at this important time.

“We are excited by our prospects in Hot Creek Valley, confident in the potential of our asset, and we look forward to the next stages in a vigorous programme of exploration and development.”

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Fri, 19 Sep 2014 08:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/61913/us-oil-gas-asks-investors-to-be-patient-as-partnering-talks-continue-72417.html
<![CDATA[Media files - US Oil & Gas chief hopes to start drilling in 'last quarter of year' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/2472/us-oil-gas-chief-hopes-to-start-drilling-in-last-quarter-of-year--2811.html Fri, 30 May 2014 09:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/2472/us-oil-gas-chief-hopes-to-start-drilling-in-last-quarter-of-year--2811.html <![CDATA[News - US Oil & Gas reports 'significant progress' at Hot Creek Valley ]]> https://www.proactiveinvestors.co.uk/companies/news/58537/us-oil-gas-reports-significant-progress-at-hot-creek-valley-68831.html US Oil & Gas (LON:USOP) has reported what it called "significant progress" in its Hot Creek Valley project in Nevada, alongside results for the latest half year.

A field development plan has now been completed for the property, which had been aimed at testing competing development scenarios, including costs and project economics, it said.

Meanwhile, advanced discussions with potential investors and strategicpartners about additional funding, the further development of the Hot CreekValley asset, and "other matters of potential advantage to the firm" are continuing, the Nevada-focused company said.

Chief executive Brian McDonnell told investors: "I am pleased to be able to report significant progress in the Hot Creek Valley project. 

"We have a highly experienced and focused technical team working onall aspects of the exploration programme. After intensive data collection,analysis and modelling activities, we are confident we are reaching acomprehensive understanding of the multiple potential hydrocarbon-bearingstructures contained in the valley.

"We have a clear work programme established, elements of which are already underway and all of which we expect to see completed in the near future. 

"Subject to final local surveys and a successful outcome to our ongoing discussions regarding financing, we are on track to drill our next well this year. We are enormously excited with our discovery and

believe that the recent analysis is indicating potential beyond anything previously envisaged."

For the six months to end March, the firm said administrative expenses amounted to US$224,578 (2013: US$604,365) reflecting decreased field exploration and continuing control on costs.

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Fri, 23 May 2014 18:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/58537/us-oil-gas-reports-significant-progress-at-hot-creek-valley-68831.html