SOURCE: US Oil & Gas Corp

November 09, 2009 16:15 ET

United States Oil & Gas Corp. Pending Acquisition in North Dakota Grows Customer Base for Propane Sales by 30%; Backlog Also Grows

AUSTIN, TX--(Marketwire - November 9, 2009) - United States Oil & Gas Corporation (PINKSHEETS: USOG), a growing oil and gas products, services and technology company, reaffirmed today that it remains on-track with its preliminary agreement to acquire a North Dakota-based oil and gas distributor of refined fuels and other oil-based products. The company is pleased to report that it has increased its residential propane business customer base by 30% year-to-date through October 31, 2009. Compared to the same period last year, sales grew by over 94,000 gallons along with a material amount of backlog of new customer orders.

With a customer base less impacted by the residential mortgage crisis that has affected many other parts of the country, demand for fuels has remained relatively steady. Located in the northern central portion of North Dakota, the target is a profitable oil and gas distribution company which sells diesel, race gasoline, propane, and lubricants to regional businesses, farms, and private residences.

Revenue at the target company is expected to total $8 million for the year ending December 31, 2009, with steady growth moving forward. Revenue for 2008 totaled $7 million, to date, the company's best on record.

The company owns a bulk storage plant, a fleet of tanker trucks, and a retail outlet. Management has over 30 years experience in the industry, and as outlined in the initial agreement, will be contracted to remain with the business for a minimum of three years.

The acquisition is expected to be finalized by year's end, subject to completing due diligence and negotiating for financing. USOG will keep the market fully updated on this acquisition as well as others it is currently working on closing.

About USOG

United States Oil & Gas Corp. is focused on the domestic oil and gas services sector, acquiring 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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