SOURCE: United States Oil & Gas Corp.

November 04, 2009 06:00 ET

USOG Clarifies Recent Market Activity and States Company Is in a Good Position

AUSTIN, TX--(Marketwire - November 4, 2009) - United States Oil & Gas Corporation (PINKSHEETS: USOG), a growing oil and gas products, services and technology company, releases clarification. Recent trading activity in the Company's common stock on the Pink Sheets has demonstrated that materially more shares were sold than were bought.

This anomaly means that a substantial amount of shares were sold short. We are investigating the current trading activity of our company's common stock with the DTC and certain broker/dealers and believe it will show a large short position. USOG is committed to taking any action necessary to protect its shareholders as well as the investing public. USOG looks forward to bringing any potential unauthorized market making activities to an end in order to make sure all market making activities are SEC and FINRA compliant.

USOG's CEO and President Alex Tawse stated, "Upon recent inquires from some of our shareholders in regard to the volatile share price in the company's commons stock, I felt it was necessary to address the market. First of all, the Company has no information that would cause such volatility to occur. Secondly, nothing has changed in the operations of the Company other than to continue on our growth pattern and expansion plans. USOG is currently profitable and it has been able to show continued growth even in a downward economy." The following are some recent events that the Company believes will add to shareholder value.

USOG Highlights Current Events, Continued Earnings & Revenues, and Planned Growth:

1. USOG has recently signed preliminary agreements and is conducting due diligence and negotiating for financing to acquire a North Dakota-based regional provider of oil and gas products including propane, diesel and gasoline. This company is expected to generate $8 million in revenues for the year ending December 31, 2009, with steady growth moving forward. The target company owns a bulk storage plant, a fleet of tanker trucks, and a retail outlet. Management, which is contracted to remain with the business for a minimum of three years, has over 30 years experience in the industry.

2. USOG is currently taking steps to move off the Pink Sheets and to the OTC Bulletin Board (OTCBB). The Company intends to move to a more regulated exchange to enhance communication with shareholders and ensure corporate transparency.

3. USOG just announced new sales contracts during the third quarter to add an estimated $1.2 million in annual revenue. Wholly owned subsidiary Turnbull Oil has signed six new customers contracted to purchase a combination of refined fuel and lubricants over the next twelve months.

4. The company has also successfully closed sales with two new drilling companies. Turnbull Oil expects to sell a combination of fuel and lubricants to the Kansas drillers for a combined $720,000 in annual sales.

5. Turnbull Oil achieved a 29% increase in sales last quarter, posting record numbers. The company believes that it will continue to meet its growth projections moving forward. Turnbull Oil's current success in sales is due to an increased demand for its fuels from Kansas farmers harvesting record corn and soybean crops. The company believes this will continue to be advantageous for sales in the future as well. Because Turnbull Oil has strong and consistent margins on its fuels and a relatively large, established customer base, the business has been able to turn a profit and increase revenue even in a down economy.

About United States Oil & Gas Corp. (PINKSHEETS: USOG)

United States Oil & Gas Corp. is focused on the domestic oil and gas services sector, acquiring oil and gas services companies with historically profitable results, strong balance sheets, high profit margins, and solid management teams in place. USOG also develops innovative technologies to increase oil and gas extraction with the smallest environmental footprint.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. USOG has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect USOG's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause USOG's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. USOG undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.

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