Nevada-focused oil explorer
The company not listed on a registered exchange and is working towards a new stock market listing
This will depend on producing oil at commercial quantities
Has dropped fracking plans in favour of new wells
What it is doing
USOP reported a US$1.06mln loss for the twelve months ended 31 July.
In October, 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.
In December it said it expects to drill East Play in the fourth quarter this year or first quarter next year if drill costings remain as currently indicated.
The drilling will be followed by a seismic survey of the West Play to develop targets there, subject to funding.
The Tertiary East Play is currently believed by the company to be the best near-term candidate subject to testing.
Tertiary East is a likely analogue of Railroad Valley’s producing Trap Spring field.
This has benefited from existing high-quality legacy seismic lines..
Current work is focussed on two horizons of interest to confirm that continuity exists between these horizons and oil-bearing zones found 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 said and this will allow a new Application to Drill to be finalised and/or an existing drill permit to be transferred.
USOG added it is fully funded for an East Play drill, based on current assumptions and available information about costings.
- 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
- Raised US$580,000 in July