U.S. OIL AND GAS PLC
LSE : USOP

U.S. OIL AND GAS PLC

June 17, 2010 02:00 ET

Placing & Updates

17 June 2010

                                             U.S. Oil and Gas plc
                                                       
                                          ("USOIL" or the "Company")
                                                       
                                               Placing & Updates


U.S.  Oil and Gas plc (PLUS: USOP), the oil and gas exploration company with exploration assets in Nye  County,
Nevada, announces that it has today placed 5,095,545 new ordinary shares of €0.0001 each (the "Placing Shares")
at  a  price of 5.5p per share (the "Placing"). The Placing has raised gross proceeds of approximately £280,255
for  the Company which will be used to complete the preparations for a drilling programme planned for later  in
the year.

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

"The current round of funding, which raised more than we originally anticipated, will enable us to complete the
full work programme in preparation for our first well drilling target."


Updates Regarding the Eblana Project and the Local Petroleum System:

In  addition to the announcement of the Placing, the Company wishes to provide the following updates  regarding
its  Eblana  project and the local petroleum system. The Company is exploring in a proven prolific  oil  &  gas
region.   Operators  in Nye County's Railroad Valley include: Shell Oil, Gulf Oil, Texaco  (Chevron),  Marathon
Oil, Husky Oil, Amoco and Phillips Petroleum.

The evidence available to the Directors indicates that Eblana has the following characteristics:

    *   The source rock is five times richer in hydrocarbons than the Covenant field (an organic content of 5-
        6% vs. 1%).
        
    *   The site has a thermally mature source rock, which the Directors believe is ideal for oil generation.
        The site also has a good reservoir rock, which is porous and permeable.

    *   The potential oil in situ is of a low viscosity.

    *   The local geology is good for seals and traps.

    *   The drive mechanism is water.

Analogs  to  Railroad  Valley oil fields in Hot Creek Valley are near intersections of lineaments  with  graben
faults,  within the deepest segments of the graben system.  The Cenozoic rocks in Hot Creek Valley are probably
a  few  thousand  feet thinner than in Railroad Valley (i.e., probably 7,000-9,000 ft).  The  west  side  fault
system  is  steeper than the east side in Hot Creek Valley (the opposite to the situation in Railroad  Valley).
The Directors believe that the Northern Nevada Rift is related to the Trap Spring & Railroad Valley oil.

Preliminary Analysis of Latest Geochemical Results in Hot Creek Valley:

USOIL  has  received the results of geochemical tests from its Eblana Phase 1, Sections 1 (West) and  3  (East)
survey  areas,  and preliminary analysis of Section 3 (East) data confirms the presence of  oil.   This  result
confirms the company's choice of Section 3 (East) as its second well-drilling target.  Preliminary analysis  of
data from Section 1 (West) has not yet been undertaken.

The  IPDS  Passive  Seismic Survey results reported on 26th February 2010 showed high DHI (Direct  Hydrocarbons
Indicator)  readings  for Section 3 (East) of up to 0.59 DHI, leading USOIL to nominate  this  section  as  its
likely  second well-drilling target.  Section 2 (North), with DHI of 0.96, was identified as the  likely  first
target.

Positive  geochemical results for Section 2 (North) have already been reported.  Seepage of  hydrocarbons  from
the  subsurface  at Section 3 (East), is now also confirmed, correlating highly with IPDS and  gravity/magnetic
survey results.  The full analysis of Section 3 geochemical results will be released shortly.

USOIL's  managing director Mr. Brian McDonnell said, 'The correlations between these and other  data  sets  are
very encouraging. We are getting highly consistent results from each of our survey activities.'

The  geochemical  results  for  Section 3 (East) will now be integrated with the geophysical,  geochemical  and
passive  seismic information already collected, to complete the stratigraphic picture for the second of USOIL's
well-drilling targets.


Future Work Programme:

USOIL's work programme over the next four months should include:

    *       integration of the results to date to complete a stratigraphic overview;
        
    *       progress an Application for Permit to Drill with Nevada's Bureau of Land Management;

    *       complete geochemical survey over Eblana Sections 1 and 3;
        
    *       undertake additional seismic survey over Eblana Sections 2 and 3; and

    *       prepare Eblana Phase 1 Section 2 drilling programme

USOIL  intends  to  spend approx. £2,200,000 on the Eblana Phase 1 Section 2 and 3well drilling  programme  and
intends to be ready to drill targets identified in 2010.


Substantial Shareholdings:

The  following  table  sets out details of changes in the percentage of voting rights  held  by  Directors  and
Substantial  Shareholders,  subsequent  to  the Placing, which are disclosable  under  the  Financial  Services
Authority's Disclosure and Transparency Rules and the PLUS Rules.


  Name                 Number of        Number of       Percentage of the     Percentage of the
                       Ordinary         Ordinary        voting rights in      voting rights in the
                       Shares held      Shares          the issued ordinary   issued ordinary share
                       prior to the     currently held  share capital of      capital of the
                       Placing                          the Company prior     Company after the
                                                        to the Placing (%)    Placing (%)

  *James T             3,129,183        3,216,456       11.77%                10.15%
  Guiry****

  *Brian J             4,655,000        4,844,091       17.51%                15.29%
  McDonnell***

  Liam T               4,053,576        4,053,576       15.25%                12.80%
  McGrattan**

  Nial P Ring*         4,490,000        4,490,000       16.89%                14.18%

  Denis O' Sullivan    1,500,000        1,572,727       5.64%                 4.97%

  Humphry O'           1,500,000        1,572,727       5.64%                 4.97%
  Sullivan

  Christopher K        0                100,000         0.00%                 0.32%
  Comerford

  HB Markets plc       0                1,250,000       0.00%                 3.95%

  SVS Securities       0                2,000,000       0.00%                 6.31%
  plc


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

**Included in Liam McGrattan's holding is the holding of Wilhan Ltd., a company wholly owned by Liam McGrattan.

***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.

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

The above interests relate to legal and beneficial holdings.


Shares in Issue:

All  Placing  Shares  will rank pari passu in all respects with the existing fully paid  ordinary  shares.  The
Placing  Shares and the existing ordinary shares each have one right to vote per share. Following  the  Placing
the total issued share capital of the Company will increase to 31,674,807 ordinary shares.


The  above  figure  may  be used by 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, under
the Disclosure and Transparency Rules. The Company's total issued share capital is now €3,167.48.


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

                                                  ---ENDS---

For further information contact:

US Oil and Gas plc
Brian McDonnell, Chief Executive Officer                  +353 (0) 872383419
beamac@eircom.net

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

Conduit PR
Jonathan Charles                                          +44 (0)20 7429 6611
jonathan@conduitpr.com                                    +44 (0)7791 892509


Notes to Editors

US  Oil 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 into  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



 

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