SOURCE: US Oil & Gas Corp

US Oil & Gas Corp

February 16, 2010 02:00 ET

United States Oil & Gas Corp Provides Update on Subsidiary's Distribution System and Rapidly Expanding Customer Base

AUSTIN, TX--(Marketwire - February 16, 2010) -  United States Oil & Gas Corp (PINKSHEETS: USOG), a growing oil and gas products, services and technology company, today provided an update on one of its expanding subsidiaries, North Dakota-based United Oil, which became a wholly owned operating subsidiary at the start of the year.

Much like the Company's other wholly owned operating subsidiary Turnbull Oil (which is based in Kansas), the management team at United Oil has been immersed in the oil and gas industry for over thirty years. This longevity has enabled United Oil to develop and run a highly efficient distribution system. Customers span two states, and nine counties.

United Oil owns its own distribution system of tankers and haulers, and has incrementally added to its property, plant and equipment. Demand at present is such that additional storage is now necessary because customer sales are exceeding supply at a high rate. Storage capacity at its bulk plant is nearly 100,000 gallons of refined fuels with additional capacity available on six acres of developable land (which the company owns) located directly adjacent to the main interstate.

At United, no single customer accounts for greater than 5% of revenue. The breakdown of sales is: refined fuels (67%), propane (10%), racing fuel (4%), and other oil-based products (1%). Grocery and other convenience store items provide 18% of sales.

About United States Oil & Gas Corp (PINKSHEETS: USOG)
United States Oil & Gas Corp is focused on acquiring and growing domestic oil and gas services companies. We target small to mid size family-run businesses with historically profitable results, strong balance sheets, high profit margins, and solid management teams in place. We made our first acquisition, Turnbull Oil, in May 2009, and our second, United Oil & Gas, Inc., in January 2010. In addition to our acquisition strategy, we intend to acquire and/or develop and deploy proprietary technologies that will explore or extract oil and gas trapped in the earth using the latest technologies that create the smallest ecological footprint as possible. Additional information can be found on the Company's website, www.usaoilandgas.com.

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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