U.S. Oil & Gas Plc update shareholders on its operational progress. Prospect assessment: The Company’s belief that both West and East Plays on its Hot Creek Valley leases are highly prospective continues to be supported by newly acquired geochemical and magnetic data, by reprocessed seismic data and by an intensive programme of data analysis and modelling. The overall objective is to assess prospectivity for a multi-well development programme on both plays. However, the immediate objective is to confirm potential targets suitable for drilling in the shortest possible time frame and within the available budget. The assessment process is furthest advanced for the Tertiary East Play, a likely analogue of Railroad Valley’s producing Trap Spring field. While the advancement of the West Play requires additional 2-D seismic data, the East Play has benefited from existing high quality legacy seismic lines, recently reprocessed. This data, integrated with the large volumes of excellent data collected from the Eblana-1 and Eblana-3 wells, is currently being integrated with existing and new geochemical, VSP, and additional, newly acquired, magnetic data. Risk assessment addressing all the factors bearing on commercial success in the East Play is advancing. Current work is focussed on two horizons of interest to confirm that continuity exists between these horizons and oil-bearing zones found in Eblana-1 and Eblana-3. Analysis is currently focussed on confirming that porosity and permeability are, as currently indicated, likely to prove favourable, and that the trap is secure. The Company believes that remaining uncertainties will shortly be resolved. Positive indications would allow a new Application to Drill to be finalised and/or an existing drill permit to be transferred subject to agreement by the relevant authorities. If the geologic assessment continues to support drilling on the East Play locations identified, the Company expects it will drill a Tertiary target there before carrying out further assessment of the Palaeozoic West Play. Currently the Company does not expect to require a new 2-D seismic survey for the East Play. That view will be subject to confirmation in the coming few weeks. However, planning for a potential survey is complete, and the programme could be initiated at any time. The Company is fully funded for an East Play drill, based on current assumptions and available information about costings. Preparations for submitting the necessary Application to Drill the East Play, including well design and other elements, are advanced. The Company had hoped it might be possible to drill in Fourth Quarter of 2019, but the complexity of the geological challenge has slowed progress. The Company’s priority has been to aim for thoroughness in its geological assessment rather than accept unnecessary risk for the sake of marginally more rapid progress. Thus far, all analyses of the potential target structure in the East Play have given positive indications of significant potential for commercial success. The remaining uncertainties are now being addressed, and the Company is confident it will soon be able to make a definitive statement about an intention to drill in the location under study. If that pronouncement is positive, an expectation of a drill or drills in First Quarter of 2020 is reasonable, subject to regulatory permissions.