SOURCE: US Oil & Gas Corp.

November 04, 2009 18:00 ET

United States Oil and Gas Corp. Takes Advantage of Increased Drilling Activity to Drive Sales

AUSTIN, TX--(Marketwire - November 4, 2009) - United States Oil & Gas Corporation (PINKSHEETS: USOG), a growing oil and gas products, services and technology company, reports that increasing drilling activity in the Midwest has helped to drive sales for its oil and gas distribution business. USOG is increasing revenue, signing new customers and expanding market share among the oil and gas exploration and services companies operating in America's heartland.

Overall, as drilling activity in the U.S. has been recovering from cyclical lows, demand for fuels and lubricants from companies that drill, complete, produce and process oil and gas has increased. The October 31, 2009 Baker Hughes Rig Count reports the number of rotary rigs actively exploring and producing nationwide rose by 60 in October to reach 1069. The rig count for September 2009 was 1009, up 29 from the 980 counted in August.

In Kansas, where USOG subsidiary Turnbull Oil operates, Independent Oil & Gas Service reports the rotary rig count has climbed nearly 75% since April 2009 to reach 71.

Wholly owned Turnbull Oil is a regional distributor of oil and gas products with 300+ customers. The company generates a significant portion of its revenue supplying oilfield businesses including oil and gas exploration and production companies and operators with products including propane, diesel, gasoline, and lubricants. For the quarter ended September 30, 2009, Turnbull Oil increased sales 29% and generated $3,500,000 in sales revenue.

As announced earlier this week, USOG has added two new drilling companies to its customer roster. Those companies are expected to purchase fuel and lubricants from Turnbull Oil for a combined $720,000 in annual sales.

Alex Tawse, CEO of USOG, commented: "With our established position as a trusted supplier to oil and gas companies, USOG is in a position to significantly increase sales as drilling expands in Kansas and other areas within America's heartland. We are working to close on the acquisition of a second oil and gas distributor with drilling customers in North Dakota."

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. Wholly owned subsidiary Turnbull Oil generated $16.5 million in revenue in fiscal year 2008.

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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