SOURCE: US Oil & Gas Corp

US Oil & Gas Corp

May 17, 2010 04:00 ET

United States Oil and Gas Corp Subsidiary Purchases New Equipment as Industry Outlook Continues to Strengthen

AUSTIN, TX--(Marketwire - May 17, 2010) -  United States Oil and Gas Corp (PINKSHEETS: USOG), an oil and gas products, services and technology company, is pleased to announce that its wholly owned operating subsidiary, Turnbull Oil, Inc., recently purchased an additional fuel delivery truck to further enhance its fuel delivery operations. The new truck is rigged to haul refined fuels in the summer season and propane during the winter months.

Turnbull plans to purchase an additional 10,500 to 11,200 gallon tanker in the next several months. Turnbull's hauling capacity now stands at approximately 50,000 gallons. Turnbull owns all of its fuel delivery vehicles, including three 18-wheel tankers for the delivery of propane and diesel fuels.

Turnbull, which had revenues of approximately $14 million in 2009, was founded in 1965. It is based in Plainville Kansas, and derives its revenue primarily from the distribution and sale of refined oil and gas products, such as diesel fuel, gasoline, and propane. These fuels are purchased from local suppliers, are stored in an on-site bulk storage plant and then sold and delivered to a broad range of regional customers via tanker truck. When not delivering its fuel to its own customers, Turnbull leases its trucks to other local businesses, maximizing its fleet's usage.

Chairman and CEO Alex Tawse commented, "It is critical for us to continue to meet customer needs, and grow market share. We believe that the prudent use of our capital resources will help us best serve our customers and stockholders, particularly in an improving economic environment. We believe that this new truck and the possible addition of another tanker in the near term will allow us to pursue more hauling for hire and brokerage of both fuel and propane to new customers."

Kansas, one of the four states in which the Company currently operates, is a major producer of natural gas and propane and has infrastructure in place to transport these commodities throughout the U.S. Kansas consumes about 85% of its natural gas output and transports excess production to other parts of the country, according to the U.S. Energy Information Administration (EIA).

Total propane sales in the U.S. are expected to increase to approximately 10.0 billion gallons in 2010 after falling to approximately 9.8 billion gallons in 2009, according to ICF International. Diesel demand is forecasted to improve 2.1% in 2010 after a 5.5% fall in 2009, according to U.S. EIA.

About United States Oil and Gas Corp (PINKSHEETS: USOG)

United States Oil and Gas Corp is focused on acquiring and growing domestic oil and gas services companies. The Company targets small to mid size family-run businesses with historically profitable results, strong balance sheets, high profit margins, and solid management teams in place. The Company made its first acquisition, Turnbull Oil, in May 2009, and its second acquisition, United Oil & Gas, Inc., in January 2010. For more information please visit the Company's website at www.usaoilandgas.com

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.

Contact Information

  • Contact:
    Marcia Levy
    Investor Relations
    +1-512-464-1225
    Email Contact