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US Oil and Gas

US Oil & Gas considers fracking at Hot Creek Valley

Snapshot

"The nature of the Hot Creek Valley geology is posing challenges."

Nevada

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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