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.
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.