SOURCE: US Oil & Gas Corp

US Oil & Gas Corp

August 24, 2010 16:40 ET

United States Oil and Gas Corp Reports Profitable Second Quarter as Sales Rise

AUSTIN, TX--(Marketwire - August 24, 2010) -  United States Oil and Gas Corp (PINKSHEETS: USOG) announced its results for the three months ended June 30, 2010 (2Q10). The Company posted a gross profit of $603,502 up from $107,855 in the second quarter of 2009 (2Q09), and $450,377 in the first quarter of 2010 (1Q10). Net income was $6,807 for 2Q10, on revenues of $6.0 million from the sale of refined fuels and other service activity. This compares to a net loss of $278,597 from revenues of $1.6 million during 2Q09, and a revised net loss of $347,131 from revenues of $5.4 million in 1Q10. Cash as of June 30, 2010 was $462,007 with total assets of $8.2 million.

Results in 2Q10 reflect the consolidated performances of the Company's two wholly owned operating subsidiaries, Turnbull Oil ("Turnbull"), which was acquired in May 2009, and United Oil & Gas, Inc. ("United"), which was acquired in January 2010. United did not contribute any revenues in 2Q09. Turnbull was acquired mid-quarter of 2Q09. It contributed revenues for half the period, or $1.6 million. Total revenues for 2Q09 were $2.8 million, and total revenues during 2Q10 were $4.8 million, an increase of approximately 73%.

Chairman and CEO Alex Tawse commented, "These positive results reflect good weather and a significant wheat harvest in the later portion of the second quarter for our Kansas based subsidiary, Turnbull."

The limited information contained in this press release is not adequate information upon which to make an informed investment decision. Additional information regarding our second quarter performance is available in our Quarterly Report of Form 10-Q to be filed with the Securities and Exchange Commission, a copy of which will be posted on the Company's website at

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 subsidiary Turnbull, which had revenues of $14 million in 2009, was founded in 1965. We own all of the facilities and equipment used at our locations in Plainville, Utica, and Palco, Kansas. Our subsidiary, United, 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. We own and operate a convenience store in Belcourt, and hold approximately six acres of developable land located in Bottineau, North Dakota.

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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    Investor Relations
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