U.S. OIL AND GAS PLC
LSE : USOP

U.S. OIL AND GAS PLC

March 30, 2011 06:11 ET

Maximum Recoverable Oil Reserves of 113 Million Barrels for Eblana Phase 1, Funding Round Completed.

                                                       
                                                       


30 March 2011

                                             U.S. Oil and Gas PLC
                                                       
                                          ("USOIL" or "the Company")
                                                       
     Maximum Recoverable Oil Reserves of 113 Million Barrels for Eblana Phase 1, Funding Round Completed.
                                                       
                                                       
                                                       
Highlights:

    *   Volumetric Analysis estimates maximum quantity of crude oil commercially recoverable in USOIL's Eblana
        Phase 1 is 113 million barrels
        
    *   Funding of up to circa $8.5m (£5.3m) raised and in place
    
    *   Fully financed for upcoming drilling programme and detailed preparations for spudding-in are complete
        


Reserves:

U.S. Oil & Gas (PLUS: USOP), the oil and gas exploration company with its main asset in Nevada, USA, is pleased
to  announce a preliminary estimate of oil in place ("OOIP") based on a report from Akrawi et al. The  analysis
uses  a  probabilistic  approach  incorporating structural volumetric capacity yielded  by  Infrasonic  Passive
Differential Spectroscopy (IPDS) and supported by other survey methods.

Results  show  total  Prospective Resources (Maximum Possible OOIP Estimates) of 187  million  barrels  with  a
maximum  value of Recoverable Possible Reserves of 113 million barrels.  Expected Probable Recoverable Reserves
for  USOIL's Eblana Phase 1 survey and catchment area, covering less than 25% of the lease area, are 47 million
barrels.



Funding:

The  company is also pleased to announce that it has today placed 5,831,830 new ordinary shares of  EUR  0.0001
each (the "Placing Shares") at an issue price of 36 pence per share (the "Placing"), representing a discount of
approximately  26%  to  the average share price over the previous month.  The Placing has  raised  proceeds  of
approximately $3.35m (£2.1m) in equity funding.

In  addition, the Company has signed Heads of Terms to put in place a secured convertible loan note facility of
up to $5.1m (£3.2m).  A further announcement will be made once a loan note agreement has been entered into.

The  combined  funding  potentially available to the company via the Placing  and  the  convertible  loan  note
facility will be up to $8.5m (£5.3m), which is intended to fully finance the Company's drilling programme.


The Company has also today allotted 34,445 new ordinary shares of EUR 0.0001 each (the "Commission Shares")  to
CFS Independent Limited, at an issue price of 36 pence per share, in lieu of placing commissions.



USOIL's Chief Executive Officer, Brian McDonnell, said:

"The  estimate  of  expected  recoverable  oil for Eblana Phase  1  and  surrounding  areas  has  exceeded  our
expectations, especially in view of the extremely high rates and low cost of recovery shown in nearby  Railroad
Valley.  With our technical evaluation complete and funding in place, we are now in a position to finalise  our
preparations. We expect to be announcing our well-drilling contractor and spudding-in date in due course."



Director Shareholdings:

The following table sets out details of the changes in Director shareholdings and the changes in the percentage
of voting rights held by Directors, subsequent to the Placing and the allotment of the Commission Shares.

--------------------------------------------------------------------------------------------------
Name               Number         of   Number         of   Percentage of the   Percentage of the
                   Ordinary   Shares   Ordinary   Shares   voting rights  in   voting rights  in
                   held prior to the   held  after   the   the        issued   the        issued
                   Placing  and  the   Placing  and  the   ordinary    share   ordinary    share
                   allotment of  the   allotment of  the   capital  of   the   capital  of   the
                   Commission Shares   Commission Shares   Company prior  to   Company after the
                                                           the  Placing  and   Placing  and  the
                                                           the allotment  of   allotment of  the
                                                           the    Commission   Commission Shares
                                                           Shares (%)          (%)
--------------------------------------------------------------------------------------------------
James T Guiry      3,216,456           3,216,456           10.15%              8.57%
1,2
--------------------------------------------------------------------------------------------------
Brian J            5,094,091           5,144,091           16.08%              13.70%
McDonnell 1,3,4                                                                
--------------------------------------------------------------------------------------------------
Christopher K      100,000             100,000             0.32%               0.27%
Comerford
--------------------------------------------------------------------------------------------------

1.  Included  in  Brian McDonnell and James T. Guiry's holdings are shares owned by Spurt Concepts  Limited,  a
company of which Brian McDonnell and James T. Guiry are shareholders and directors.

2.  James  T.  Guiry's holding includes ordinary shares held by his wife, Margaret Guiry, via  both  joint  and
several holdings.

3.  Included in Brian McDonnell's holding is the holding of Carrefour Training and Development Ltd., a  company
of which Brian McDonnell is a shareholder and director.

4.  Brian  McDonnell's holding includes ordinary shares held by his father, Bernard McDonnell,  (who  purchased
50,000 shares in the Placing).



The above interests relate to legal and beneficial holdings.



Orderly Market Agreement:

Niall  Ring, a former director, who holds 2,000,000 ordinary shares, has undertaken in respect of 1,900,000  of
those shares that, subject to certain conditions, he will make disposals only through the Company's broker.



Shares in Issue:

All  Placing  Shares  and Commission Shares will rank pari passu in all respects with the existing  fully  paid
ordinary shares.  The Placing Shares, Commission Shares and the existing ordinary shares each have one right to
vote per share. Following the Placing and the allotment of the Commission Shares the total issued share capital
of the Company will increase to 37,541,082 ordinary shares.

The  above  figure may be used by the shareholders as the denominator for the calculations by which  they  will
determine if they are required to notify their interest in, or a change to, their interest in the Company.  The
Company's total issued share capital is now EUR3,754.11.


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



For further information contact:

U.S. Oil and Gas plc

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



SVS Securities plc - PLUS Corporate Adviser

Peter Ward / Alexander Brearley+44 (0)20 7638 5600



SVS Securities plc - Broker

Ian Callaway / Alex Mattey+44 (0)20 7638 5600

ian.callaway@svssecurities.com



Notes to Editors

USOil  and Gas plc is a PLUS (Ticker: USOP) listed 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 in to  marketable
opportunities  for the medium and large-sized oil companies. The Company's main asset is in Nye County,  Nevada
where  it  holds the entire share capital of the US-based company Major Oil International LLC.  Major  Oil  has
acquired, and intends to acquire, rights to exploration and development acreage in two high potential  resource
areas 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.

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


U.S. OIL AND GAS PLC



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