SOURCE: US Oil & Gas Corp

US Oil & Gas Corp

September 15, 2010 12:56 ET

Discovery of New Oil Formation in North Dakota Expected to Benefit United States Oil and Gas Corp

AUSTIN, TX--(Marketwire - September 15, 2010) -  United States Oil and Gas Corp (PINKSHEETS: USOG) announced today that in light of recent drilling activity surrounding the discovery of a large new oil formation called Spearfish, with its potentially several billion barrels of oil reserves, it continues to evaluate improved prospects for growth at its North Dakota based operating subsidiary, United Oil & Gas, Inc. ("United").

The Director of the North Dakota Department of Mineral Resources, Lynn Helms, stated that several thousand wells may ultimately be drilled over the coming years in central Bottineau County, where USOG's subsidiary United is located. The Company holds approximately six acres of developable land in addition to its bulk fuel plant and delivery operations.

Chairman and CEO Alex Tawse commented, "We are currently working on a plan and timeline to develop our land in Bottineau as well as open a second gas station. Today, there are dozens of exploration wells being drilled and permitted and we are looking to capitalize on the increased activity. Over the coming years, the exploration is expected to provide an across the board increase in demand for refined fuel as well as residential propane and retail gasoline."

Spearfish is currently less well known than the nearby Bakken Shale Formation with its estimated billions of barrels of accessible oil, the largest since Alaska's Prudhoe Bay. Newer horizontal drilling techniques that have unlocked the oil reserves at Bakken should also be applicable at Spearfish with its similar formation. Helms added that the oil at Spearfish is at a shallower depth than at Bakken and should be less expensive to extract.

About USOG
United States Oil and 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. Our wholly owned subsidiary Turnbull Oil ("Turnbull") was founded in 1965. Turnbull, which was acquired in May 2009, had revenues of $14 million in 2009. We own all of the facilities and equipment used at our locations in Plainville, Utica, and Palco, Kansas. Our wholly owned subsidiary, United, which was acquired in January 2010, was founded in 2003, and sells and distributes refined oil and gas products throughout North Dakota as well as regions of South Dakota and Montana. For more information, please visit the Company's website at

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company'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 the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company 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. Refer to "Item 1A - Risk Factors" in our registration on Form 10 filed with the Securities and Exchange Commission for a discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

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