What it is doing
US Oil & Gas PLC (USOP) in April 2020 told investors it hopes to drill a new well during the second quarter of 2020 at its project in Nevada.
Despite coronavirus impacts the indications at present are that US federal and state regulatory processes may not be slowed to a significant degree.
Coronavirus restrictions may, however, impact operational timelines that cannot be anticipated at this point, it added.
The envisaged well, Eblana-9, is expected to target a block with a 28 million barrels of oil, USOP said.
Additionally, at the same time, the company captured another 1,223 acres for its footprint in Nevada.
In the fourth quarter of 2019, US Oil & Gas acquired more acreage in the Hot Creek Valley to increase its total to 73,725 acres at an annual lease cost of US$78,000.
It also, at that time, began to discuss drill plans which would target the ‘East Play’ within the project.
The intention was that well drilling would be followed by a seismic survey of the West Play to develop targets.
The East Play is believed by the company to be the best near-term candidate subject to testing.
It is said to be a likely analogue of Railroad Valley’s producing Trap Spring field.
Work focussed on two horizons of interest to confirm that continuity exists between these horizons and oil-bearing zones seen in the Eblana-1 and Eblana-3 wells, said the company.
Analysis is currently focussed on confirming that porosity and permeability are, as currently indicated, likely to prove favourable, and that the trap is secure, said USOG.
“The company believes that remaining uncertainties will shortly be resolved,” it added that this will allow a new application for drilling to be finalised and/or an existing drill permit to be transferred.
- Firm indications that Hot Creek Valley lease area features a major oil system analogous to that in Railroad Valley
- Targets for additional drilling to be identified and new development proposal submitted
- Listing on a registered exchange