US Oil & Gas PLC (LON:USOP) 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 company, which focuses on exploration projects at Hot Creek Valley in Nevada, said the drilling will be followed by a seismic survey of the West Play to develop targets there, subject to funding.
US Oil & Gas said it is currently plugging water wells for the Eblana-1 and Eblana-3 well sites, as plans have been approved by regulators and contractors have been selected.
In the year ended 31 July, pre-tax loss shrunk 36% to US$676,000 compared to the previous 12 months, while cash in the bank at the end of the period was US$1.4mln.
“The board believes that exploring both Plays is the strategy most likely to realise the potential for major discoveries in Hot Creek Valley and ultimately the potential for commercial success,” management said in a release.