US Oil & Gas PLC (USOP) remains optimistic it can drill a well on its Hot Creek Valley leases in Nevada by the end of the first quarter of next year.
The Tertiary East Play is the best near-term candidate, subject to testing, the company said.
USOG had hoped it might be possible to drill this quarter, but the complexity of the geological challenge has slowed progress.
Currently unquoted, US Oil &Gas said it was analysing newly acquired geochemical and magnetic data and reprocessed seismic data to identify the best prospect for drilling.
The overall objective is to assess prospectivity for a multi-well development programme on both the East and West plays at Hot Creek Valley.
Tertiary East Play is a likely analogue of Railroad Valley’s producing Trap Spring field and has benefited from existing high-quality legacy seismic lines, that have been recently reprocessed.
Current work is focussed on two horizons of interest to confirm that continuity exists between these and oil-bearing zones found in the Eblana-1 and Eblana-3 wells, said the statement.
Analysis is currently focussed on confirming that porosity and permeability are, as currently indicated, likely to prove favourable and that the trap is secure, added USOG.
“The company believes that remaining uncertainties will shortly be resolved,” and this will allow a new Application to Drill to be finalised and/or an existing drill permit to be transferred.
Currently, USOG does not expect to require a new 2-D seismic survey for the East Play, adding it is fully funded for an East Play drill, based on current assumptions and available information about costings.