US Oil & Gas PLC (USOIL) told investors that it is presently preparing applications for permits to drill three new wells.
The company said it hopes to drill a well in the first quarter of 2020, subject to regulatory approvals, and subsequent drilling would depend upon the outcome of the first well.
It follows the assessment of exploration prospects at the Hot Creek Valley project area, in Nevada, the company has identified what are described as “promising drilling targets”.
This was based on analysis of previously drilled wells, Eblana-1 and Eblana-3, along with reprocessed seismic, gravity, magnetic and geochemical data.
The company noted: “The interpreted reservoir lies in a porous zone of the Tertiary Volcanics, most likely in weathered tuffs (ignimbrites) and/or fractured vesicular basalt.
“This zone features a structural trap identified on seismic and well log data and appears to be locally closed by down-to-the east faults, separating the zone into three compartments.
“Seismic data supports the presence of an intact seal over the porous zones, with the top of each compartment sealed by non-porous volcanic flows.
“At least three separate porous layers are visible on seismic in each of the compartments, with the shallowest of these being at 4,300 ft below ground surface and the deepest at 5,500 ft. Gross thickness of the porous layers is 300 to 450 ft.”
It added: “Due to limited seismic coverage, the full lateral extent of the reservoir is uncertain, but at a conservative estimate of 300 ft the surface area is 560 acres. Resources targeted in the well are provisionally estimated at 38-56 million bbls oil.”