US Oil & Gas (USOP) said it has completed the mobilization of equipment in preparation for drilling its first exploration well, Eblana -1, at its Hot Creek Valley project in Nevada. Drilling is scheduled to start on Saturday, May 5.
It is planning to drill a second well immediately after Eblana-1. It secured a drilling contract for Eblana-2 last month.
The company's main asset is in Nye County, Nevada, where it holds the entire share capital of US-based company Major Oil International LLC.
Major Oil has acquired rights to exploration and development acreage in Hot Creek Valley, adjacent to the oil and gas rich Railroad Valley area of Nevada.
US Oil has completed extensive surveys of its Hot Creek lease area.
In February this year, the company released a newly completed competent persons report. The report assessed the Hot Creek Valley project and gave an estimate of in-place prospective resources of 189 million barrels of oil (P50), of that around 67 million barrels are estimated to be recoverable.
The estimated unrisked net present value for the prospective resources is US$514 million.
Shares in the group were last month admitted to the over-the-counter (OTC) level of GXG Markets, a trading platform for small companies, based and regulated in Denmark.