U.S. Oil and Gas Resources Inc.

U.S. Oil and Gas Resources Inc.

January 10, 2005 14:37 ET

U.S. Oil and Gas Resources Begins Third Well in Puckett Field


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: U.S. OIL AND GAS RESOURCES INC.

TSX VENTURE SYMBOL: USR

JANUARY 10, 2005 - 14:37 ET

U.S. Oil and Gas Resources Begins Third Well in
Puckett Field

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2005) - U. S. Oil
and Gas Resources, (TSX VENTURE:USR) announces that as part of the 6
well farm out in Puckett Field in conjunction with August Energy Corp.
(PINK SHEETS:AENC) and ORION Petroleum Corp. (PINK SHEETS:ONPC), it has
moved a workover rig to the third well, the Laughlin 18-14 #2 well in
Puckett Field, Smith County, Mississippi. On Friday, January 7th, 2005,
the company rigged up on the third well with an objective to drill out
four bridge plugs so that it can complete at the Paluxy Gas Sand at a
measured depth of 9483-9507 ft. The targeted zone is the same one that
was completed in USR's last well, the Laughlin McIntyre 18-13 #1, which
is currently averaging production at 1.1 million cubic feet of gas per
day together with 8 to 10 barrels of condensate per day on a 9/64th
choke.

The Laughlin 18-14 #2 well is situated approximately 1250 feet from the
producing Laughlin 18-13 #1 well. The company's consulting geologist now
estimates that the current producing reservoir (referred to as the 9500
Paluxy Gas Sand) may contain as much as 2.5 billion cubic feet of
recoverable gas in this section of the field by itself. Continued and
more detailed studies maintain the company's confidence that Puckett
Field will ultimately yield more oil and gas production than the company
first estimated when it acquired interest in the properties.

In addition to the primary objective 9500 sand, other secondary
objective zones in the well which appear to be productive from our
studies are the 9060, 9300, and the 9400 sands. From well records, we
believe that we will have to successfully drill out bridge plugs at
7950, 8148, 8400, and 8600 ft in order to effect completions. This is
the same type of work that USR successfully did to allow completion in
the Laughlin 18-13 #1 well (the second well). It is estimated that the
work will take seven to twelve working days.

Jurgen Wolf, Director


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    U.S. Oil and Gas Resources Inc.
    Jurgen Wolf
    Director
    (604) 681-1559
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.