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US Oil & Gas raises just shy of US$580,000 to fund drilling operations

The oiler said further geological work at its Hot Creek Valley project had reinforced the belief that both western and eastern plays in its acreage were “highly prospective”

Oil derricks
The company is now focused on finalising multiple drilling targets

US Oil & Gas PLC has raised US$577,295 in a share placing with private investors to fund its drilling operations.

In an announcement on Tuesday evening, the unlisted oiler said it had placed around 1.5mln new shares at a price of 30p each, which included a share premium of around €0.34.

READ: US Oil & Gas decides to focus on new well plans

The firm said the proceeds would be used for additional working capital including the funding of drilling operations as it planned to focus on drilling new wells having plugged and abandoned its Eblana-1, Eblana-3 and Eblana-6 wells.

In an operations update alongside the news of the placing, the company said further geological work and modelling had reinforced its belief that both western and eastern plays in its acreage were “highly prospective” and included a potential analogue of the nearby Grant Canyon oil field, which contains around 20mln barrels of oil.

The intention was now to finalise “multiple potential drilling targets” in the western play, with a seismic survey currently planned while preliminary work on drilling applications and well design was “advanced”.

Brian McDonnell, chief executive, said that the company was now focused on achieving its next drill “as soon as possible”.

“The mass of data collected from both Eblana wells has been invaluable, and our modelling of the oil system and structures in Hot Creek Valley continues to support our belief in the extraordinary potential of both Western and Eastern Plays”, he added.

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