U.S. Oil & Gas plc : - Resource Estimates Update

    13 January, 2017
     

                                  U.S. Oil & Gas Plc.                              
                                                                                   
                              ("US Oil" or the "Company")                          
                                                                                   

                               Resource Estimates Update                           

    U.S. Oil & Gas Plc, the oil and gas exploration company with assets in Nevada,
    makes the following announcement:

    Highlights:

      * Structural modelling report for US Oil's Hot Creek Valley Prospect by Baker
        Hughes complete
       
      * OOIP Best Estimate for the Tertiary Eblana Structure is over 1 billion
        barrels Contingent Resources
       
      * Recoverable Contingent Oil Best Estimate is 203.4 million barrels
       
      * Estimates for full lease acreage in preparation by Baker Hughes
         
       
    Structural modelling of US Oil's Hot Creek Valley Prospect by Baker Hughes is
    complete.  The Board and the Company's technical team are now studying the
    findings, and further details will be communicated to shareholders in due
    course. In the meantime, Baker Hughes' revised Oil-In-Place estimates can be
    reported.  These are a significant upgrade on the previous estimates reported
    in 2013.

    For four zones of the Tertiary Eblana Structure, Oil-In-Place estimates and
    Recoverable Oil are as follows:

                                              OOIP (MMBBl)               
                                                                         
                                  Low case      Best case     High case  
                                                                         
    TZ1                                   185           677          1214
                                                                         
    TZ2                                     8            29            58
                                                                         
    TZ3                                     9            40            83
                                                                         
    TZ4                                    72           271           539
                                                                         
    OOIP (millions barrels)               274          1017          1894
                                                                         
    TOTAL RECOVERABLE                    54.8         203.4         378.8
    CONTINGENT OIL RESOURCES                                             
    (millions bbls                                                       
    at 20% recoverability)                                               

    Zones TZ2 and TZ4 flowed oil on previous tests.

    Background
    In 2016 the Company contracted Halliburton to carry out a Vertical Seismic
    Profile (VSP) survey based on US Oil's Eblana #1 discovery well, and Baker
    Hughes (BHI) to carry out structural modelling based on all the available data
    including VSP. The purpose of the structural modelling was to reduce risk as
    far as possible before the Company carries out its plan to re-enter the Eblana
    #1 well and sidetrack to identified targets. In addition, Baker Hughes
    calculated the revised Oil-In-Place estimates reported above for the Tertiary
    Structure updip of the Eblana #1 well.  These estimates do not include the
    Palaeozoic strata, which may also be highly prospective.  Baker Hughes is
    currently working on revised Oil-In-Place estimates for the Company's full 88
    sq km lease acreage, and these will be reported in due course.

    Work programme
    The Company is now moving forward rapidly with its corporate and operational
    agendas.  The Board and the US Oil technical team will now take time to study
    the Baker Hughes report. Meanwhile, discussions with drilling contractors are
    taking place, and a detailed drill plan is being prepared. 

    Fundraising efforts continue with the primary aim of maximising resources for
    drilling operations.


    THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS
    ANNOUNCEMENT

    Neither this announcement nor the information contained herein constitutes an
    offer or solicitation by U.S. Oil and Gas Plc for the purchase or sale of any
    securities nor does it constitute a solicitation to any person in any
    jurisdiction where solicitation would be unlawful.

    For further information contact:

    Brian McDonnell, Chief Executive Officer [phone]
    Alexander David Securities Ltd - Corporate Finance Adviser
    David Scott [phone]
    James Dewhurst [phone]
    Email:  [e-mail]

    Definitions:  The terms 'Reserves' and 'Contingent Resources' are as defined in
    the 'Petroleum Resources Management System' of the Society of Petroleum
    Engineers.

    About U.S. Oil & Gas:

    U.S. Oil & Gas plc is an oil and gas exploration company with a strategy to
    identify and acquire oil and gas assets in the early phase of the upstream
    life-cycle and mature them. The Company's main asset is in Nye County, Nevada
    where it holds the entire share capital of US-based company, Major Oil
    International LLC ("Major Oil"). Major Oil has acquired rights to exploration
    and development acreage in Hot Creek Valley, Nye County, adjacent to the oil
    and gas rich Railroad Valley area of Nevada, both of which are part of the
    Sevier Thrust of central Nevada and western Utah, USA.

    For further information please refer to our website at: www.usoil.us