U.S. OIL AND GAS PLC
LSE : USOP

February 23, 2012 02:00 ET

Competent Person's Report

23 February 2012

                                              U.S. Oil & Gas Plc.
                                                       
                                          ("US Oil" or the "Company")
                                                       
                                           Competent Person's Report
                                                       
                                                       
                                                       
U.S. Oil & Gas plc (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada, USA, is
pleased to announce the completion of a Competent Person's Report (CPR) from independent petroleum consultants
Forrest A. Garb & Associates (FGA). The CPR follows the interpretation of all currently available data related
to US Oil's original (pre-December 2011) lease area at Hot Creek Valley. U.S. Oil & Gas has a 100% interest in
the property through its wholly owned subsidiary Major Oil International LLC.

Based on a detailed review and using the Petroleum Resources Management System (SPE-PRMS), Forrest A. Garb &
Associates calculated gross Prospective Resources and Net Present Value for the prospect.


Highlights:

Geological Assessment of Drilling Target:

* Major Oil used a rigorous process to identify possible oil and gas accumulations.
* No single data analysis is taken as a basis for drilling the well.
* The subsurface structure appears to be a continuity of the oil producing welded volcanic tuffs found
  in Railroad Valley.
* The dominant trap type is structural given the faulting and compartments in the area.
* According to SPE-PMRS guidelines, the "prospect" is sufficiently well defined to be a drilling target.
    
        
        
Best Estimate Prospective Resources (50% probability) based on SPE-PRMS:

* Gross Prospective Resources amount to 189 MMSTB.
* Gross estimates for recoverable oil are 67 MMSTB.
* Estimated Net Present Value (un-risked) for the Prospective Resources is $514 MM for a ten year
  projection discounted at 10% per year.
    
        
        
CPR Summary

FGA based their analysis on all available data for US Oil's original (pre-December 2011) lease area reviewing
gravity data, magnetic data, satellite imagery, 2-D seismic data, passive seismic data, and various consulting
firms' interpretations provided by Major Oil. Based on review of the materials provided, FGA concluded that
Major Oil used a thorough, rigorous process to identify possible oil and gas accumulations and mitigate risk.
They are of the opinion that activities proposed in this exploration program are consistent with current
practices in oil and gas exploration, and FGA believes that this Prospect is sufficiently well-defined to be a
viable drilling target.



Oil and Gas - Prospective Resources - Probability Estimates

                                                         
                                    Gross Prospective Resources Oil Estimates
                                                         
                                             (all figures in MMSTB)
                                                         
                                 Low             Best                  High
                                                                         
                                (P90)           (P50)                  (P10)
                                                                         
           OOIP                  92              189                    322
                                                                         
        Recoverable              29               67                    114
                                                                         




Financial Model and Net Present Value

FGA reviewed the assumptions and cash flow calculations used in the present value estimate for a financial
model provided by Major Oil. The model was based on a 15 well exploration plan with wells being drilled over a
two year period, a capital investment of $40 MM, and oil production and cash flows projected over a ten year
period. This 15 well project has an estimated present value discounted at 10% per year of $514 MM (unrisked)
for the ten-year projection. FGA agrees with the procedure and results of these economics based on the
assumptions described.

US Oil and Gas CEO Brian McDonnell said, "This comprehensive independent assessment of the prospectivity of our
Hot Creek Valley property has confirmed its considerable potential, endorsed our exploration process and
validated our selection of drilling targets. We now look forward to starting our drilling campaign subject to
final approval by US federal authorities."

A copy of the letter from Forrest A. Garb & Associates summarizing its conclusions will be made available on
the Company website www.usoil.us.



About Forrest Garb Associates

Founded in 1988, Forrest A. Garb & Associates, Inc. (FGA) is an International Petroleum Consulting firm
providing services to the upstream oil and gas industry. FGA's expertise includes petroleum reservoir
evaluation and economic analysis, as well as geological services for exploration and exploitation projects. FGA
restricts it business activities to consulting services only, and does not accept contingency fees. Because the
company has no hydrocarbon production and because it has no outside ownership to dictate opinions, the
determinations of the firm are independent. FGA's studies are without bias and are based on the best
interpretation of all available data after processing with current methods and equipment. FGA does not own
operating interests in any oil, gas, or mineral properties. The firm subscribes to a code of professional
conduct, and its employees actively support their related technical and professional societies. This report is
based on information compiled by professional staff members of FGA, as well as consultants providing services
to FGA.

Interaction  with US Oil & Gas took place in order to understand the Company's technical approach, but the
conclusions drawn are entirely those of Forrest A. Garb & Associates. FGA has consented in writing to the
reference to them in this announcement and to the estimates of oil provided.



THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE CONTENTS OF THIS ANNOUNCEMENT

                                                  ---ENDS---
                                                       


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

negorova@lionsgatecomms.com



Notes to Editors

U.S. Oil & 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.

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

U.S. OIL & GAS PLC



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