US Oil & Gas PLC has said that under Order No. 3395 dated January 20, 2021, and reported January 21, the acting Secretary of the US Department of the Interior, Scott de la Vega, has suspended leasing for fossil fuel production on federal lands and waters, as well as the issuing of new drilling permits, for 60 days while legal and policy implications are evaluated.
The company said it is not clear at this time whether a suspension of the issuance of drill permits allows for permit applications—including Notices of Staking, Applications to Drill (APD’s) and Environmental Assessments—to be processed normally up to the point of actual issue. The firm also said it has written to the Nevada Bureau of Land Management in this regard, and they have indicated they do not yet have a definitive answer.
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Meanwhile, the group said it is close to finalising multiple drilling targets on its leases and intends to submit Notice of Staking documentation in the near future as a preliminary to submitting APDs. It said it hopes that processing will continue as normal during the 60 day suspension period.
The firm added that the broader implications from the suspension are not yet clear, but it may impact the timing of well drilling as well as negatively affecting its immediate fundraising prospects, and that shareholders will be further informed as and when the situation is materially clarified by the federal authorities.