February 27, 2012 03:00 ET

Announcement of Drilling Contractor

27 February, 2012

                                              US Oil and Gas plc
                                          ("US Oil" or "the Company")
                                      Announcement of Drilling Contractor

U.S.  Oil  and  Gas  (PLUS: USOP), with exploration assets in Nevada, USA, announces the following  operational

US  Oil  &  Gas  plc ("US Oil" or the "Company") is pleased to announce that Major Oil International  LLC,  its
wholly owned subsidiary, has agreed heads of terms with Nabors Industries Inc. to drill the Eblana #1 well plus
at least one further well on the Company's 100% owned Hot Creek Valley, Nevada prospect.

Nabors  Industries is the largest drilling contractor in the world, conducting oil, gas and geothermal drilling
operations in the U.S. Lower 48 states, Alaska, Canada and internationally in more than 30 additional countries

The  contracted rig, No. 475 is a hydraulic Diesel Electric 1500 HP Land Rig with 710,000 lbs hoisting capacity
on  Low-Low with 12 lines driven by two DC motors. The targeted drilling depth is approximately 8,000 feet  and
the estimated completion time for the first well is approximately 25 days.

During discussions with the BLM concerning the APD, all technical requirements were reviewed and the supply  of
additional information from the relevant drilling contractor was agreed.  As the drilling contractor  has  been
selected, this information has now been supplied to the BLM, which will enable them to complete processing  of
the APD. Drilling is subject to the final award of the Permit to Drill by US federal authorities, therefore an
announcement on mobilization and spudding-in date will be made in a separate press release.

Mr.  Brian  McDonnell, CEO of US Oil & Gas, commented, "With this drilling agreement, the Company has  come  an
important step closer to appraising the first of our highly prospective targets in Hot Creek Valley.   Together
with  our  industry-leading  drilling partner, we keenly look forward to the  next  phase  of  our  exploration

Ron  Cleveland (Nabors Drilling, USA) said, "We look forward to working with Major Oil in Hot Creek  Valley  on
this  their  first  drilling programme, bringing to bear our extensive experience of operations  in  the  Great


For further information contact:

U.S. Oil and Gas plc

Brian McDonnell, Chief Executive Officer +353 (0) 872383419

Lionsgate Communications - Financial Public Relations

Natalia Egorova +44 (0)7500 828771


Notes to Editors:

U.S.  Oil  and  Gas  plc is a PLUS-quoted (Ticker: USOP) oil and gas exploration company  with  a  strategy  to
identify  and  acquire oil and gas assets in the early phase of the upstream life-cycle and  mature  them.  The
Company's main asset is in Nye County, Nevada where it holds the entire share capital of US-based company Major
Oil  International LLC ("Major Oil"). Major Oil has acquired rights to exploration and development  acreage  in
Hot  Creek Valley, Nye County, adjacent to the oil and gas rich Railroad Valley area of Nevada, both  of  which
are part of the Sevier Thrust of central Nevada and western Utah, USA.

US  Oil has completed extensive surveys of its Hot Creek lease area, generating 18 datasets using the following
survey  methods: Gravity and Magnetic Resonance, Geochemical, 2-D Seismic, Landsat remote sensing,  Geophysical
studies,  Conodont  Alteration Index (CAI), Pyrolysis (TOC), Vitronite Reflectance-Visual  Kerogen  (TAI),  2-D
Passive Seismic (IPDS) and 3-D Passive Seismic.

About Nabors Industries Ltd:
The  Nabors companies own and operate approximately 491 land drilling rigs and approximately 749 land  workover
and  well-servicing  rigs in North America. Nabors' actively marketed offshore fleet consists  of  39  platform
rigs,  12  jack up units and 4 barge rigs in the United States and multiple international markets. In addition,
Nabors  is one of the largest providers of hydraulic fracturing, cementing, nitrogen and acid pressure  pumping
services  with over 780,000 hydraulic horsepower currently in service. Nabors also manufactures top drives  and
drilling  instrumentation systems and provides comprehensive oilfield hauling, engineering, civil construction,
logistics,  and  facilities maintenance and project management services. Nabors participates  in  most  of  the
significant oil and gas markets in the world

For further information please refer to our website at: www.usoil.us.

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