U.S. Oil & Gas Plc update shareholders on its operational progress. Intensive interpretation work has been carried out a by Railroad Valley Analogue Project team comprised of geologists with in-depth experience of the adjacent producing field and focusing on East and West Plays in Hot Creek Valley. The team has now reported that assessment is complete for the Tertiary East Play, a likely analogue of Railroad Valley’s producing Trap Spring field. Promising drilling targets have been identified by analysis and interpretation of well data from Eblana-1 and Eblana-3, four reprocessed 2-D seismic lines, gravity, magnetic and geochemical data, as well as VSP data from Eblana-1 along with energy absorption analysis. Further seismic was not deemed essential at this stage. The Company is preparing applications for permits to drill three wells, Eblana-8, Eblana-9 and Eblana-10. Eblana-9 will be the first well drilled. If commercial, the other wells will follow. The interpreted reservoir lies in a porous zone of the Tertiary Volcanics, most likely in weathered tuffs (ignimbrites) and/or fractured vesicular basalt. This zone features a structural trap identified on seismic and well log data and appears to be locally closed by down-to-the east faults, separating the zone into three compartments. Seismic data supports the presence of an intact seal over the porous zones, with the top of each compartment sealed by non-porous volcanic flows. At least three separate porous layers are visible on seismic in each of the compartments, with the shallowest of these being at 4,300 ft below ground surface and the deepest at 5,500 ft. Gross thickness of the porous layers is 300 to 450 ft. Based on the well log response of these layers in the Eblana-1 well, porosity is estimated at between 12% and 18%. Energy absorption analysis suggests hydrocarbons could be present in the porous units. Large seismic amplitude anomalies (bright spots) have been interpreted as directly indicating the presence of hydrocarbons, although other factors can also account for these effects. The planned Eblana-9 target horizon is approximately 1500 ft to 1900 ft above the same horizon present in the Eblana-1 well.