U.S. Oil & Gas Announces Operational Update

Source: www.gulfoilandgas.com 5/7/2021, Location: North America

U.S. Oil & Gas Plc, (“USOIL”), the oil and gas exploration company with assets in Nevada, is pleased to make the following announcement:

Operational update

As previously announced, the Company has submitted Notices of Staking for three drill locations in its West Play: Eblana-7, Eblana-8 and Eblana-13. The locations are on one of two zones with interpreted Palaeozoic slide block structures suggested by geophysical and geochemical data and which may feature carbonate lithology. These zones appear to be analogues of Railroad Valley’s Grant Canyon Field, and each may contain multiple slide blocks. The data suggests that in the West Play multiple slide blocks may exist within the Company’s acreage.

Zone 1, an area of approximately 4,064 acres, appears to contain several prospective structures based on interpretation of the available data. Of these, three are targeted by the wells for which the Company has submitted Notices of Staking. For those three locations, total best estimate Prospective Resources are 86.5 million barrels of Original Oil in Place (STOIP) based on a productive area of 170 acres per block and average porosity of 15%. If a Grant Canyon analogue is confirmed, and the reservoir is formed from fractured carbonates with extremely high effective porosity, flow rates could be exceptionally high. The first drilling priority, Eblana-7, targets 28.83 million barrels (STOIP).

Zone 2, with 1,504 acres, potentially contains two prospective structures. For those, total best estimate Prospective Resources are 57.66 million barrels of Original Oil in Place (STOIP) based on similar estimates to Zone 1.

Background

Data from the Company’s three non-commercial wells in Hot Creek Valley, Nevada, Eblana-1, Eblana-3 and Eblana-9, along with geophysical and geochemical surveys, two strong plays on the Company’s leases, one to the west and the other to the east. Two of the Company’s three wells on the East Play, Eblana-1 and Eblana-3, flowed high quality oil to the surface (API 28.5-34.5) indicating an active oil system. The third, Eblana-9 was dry.

While further geophysical studies are carried out on the East Play, the Company intends to drill a further well or wells on the West Play, subject to permits and funding. Several of the Company’s leases believed prospective on the West Play will expire between February and April 2022. Each such lease must produce oil in paying quantities if it is to be retained, making drilling an urgent priority.

Seismic, gravity, magnetic and geochemical data from the West Play support the interpretation that slide block structures are present and are analogues of nearby Railroad Valley’s Grant Canyon field. Grant Canyon historically included the most productive onshore well in the USA, flowing at over 4,000 bopd, and produced 21.4 million barrels of oil (data to 2015). In Hot Creek valley, potentially analogous structures may feature good reservoir properties and, if charged with hydrocarbons, promise potentially excellent productivity.

Funding

The Company’s intention, subject to permits and funding, is to drill in Q2 or Q3 2021 at least one of the three locations in the West Play for which Notices of Staking have been submitted. To that end, the Company is exploring all possible routes to raise the necessary funding, including approaches to institutional investors and Private Placings.

The Board has considered the possibility that potential investors may be deterred by the risk that insufficient funds will be raised to drill at least one well. In the light of this last factor, and to increase the chances that sufficient funds will be raised, the Company intends to set a deadline of September 30 2021, by which time a stated target amount sufficient to drill a single well (“the drill budget”) must be met. If the drill budget is not raised by that date, all funds will be returned to participants. This information is being provided to reassure shareholders that all reasonable steps are being taken to achieve the Company’s objective of drilling a further well or wells in Hot Creek Valley and is not an invitation to subscribe or to purchase shares. The value set for the drill budget will be communicated in investor documents.

The Board believes that the above strategy of returning funds if a stated drill budget is not raised is potentially reassuring to would-be investors and offers the best chance of raising the required capital. If the drill budget cannot be raised, and funds raised are returned, the Board will have to consider the Company’s remaining options.

Brian McDonnell, US Oil CEO, said:

“Intensive data analysis of the West Play over the past year has revealed two potentially large slip block zones that appear to be excellent analogues of the Grant Canyon field. While work on the East Play continues, we are expending maximum effort to achieve at least one drill in the West as soon as possible. The potential is, we believe, enormous. A successful well whose productivity even approached that of Grant Canyon would be a company-making achievement. That is our opportunity and our goal, and with the support of shareholders and the investor community, that goal is within reach.”


Egypt >>  5/18/2022 - SDX Energy Plc (SDX) is pleased to announce the spudding of the MSD-24 infill development well on the Meseda field. This well is the fourth in a fully...
Australia >>  5/16/2022 - Highlights
- Drilling of Glenaras 28 complete
- Well encountered 27m of gassy coals
- Steps underway to mitigate impact of further uns...


United Kingdom >>  5/13/2022 - UK Oil & Gas PLC has announced that the North Sea Transition Authority (formerly the Oil and Gas Authority) has granted a one-year extension to the ag...
Australia >>  5/12/2022 - Western Gas has provided an operational update on the drilling of the Sasanof-1 exploration well and will issue further updates upon the completion of...

Norway >>  5/12/2022 - Aker BP ASA, operator of production licence 685, has concluded the drilling of wildcat well 35/4-3.

The well was drilled about 20 kilometre...

Tunisia >>  5/12/2022 - Serinus Energy plc (“Serinus”) (SENX) is pleased to announce its interim results for the three months ended 31 March 2022. ...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.