SOURCE: US Oil & Gas Corp

US Oil & Gas Corp

January 14, 2010 04:00 ET

United States Oil & Gas Corporation Sees Synergies and Improved Efficiencies With Its Recent Acquisitions

AUSTIN, TX--(Marketwire - January 14, 2010) - United States Oil & Gas Corporation (PINKSHEETS: USOG), a growing oil and gas products, services and technology company, today provided additional details about its profitable Kansas-based operating subsidiary, Turnbull Oil. USOG purchased Turnbull in May 2009. Along with the profitable family-run United Oil of Bottineau, North Dakota which USOG purchased this month, Turnbull is a wholly owned operating subsidiary of USOG.

During 2010, the Company will explore available efficiencies from the combined operations of its two subsidiaries. The Company plans to share best practices, explore savings from bulk purchases from suppliers and possible combined marketing and sales strategies both at the local level and through the increased exposure that comes with being a public company. CEO Alex Tawse commented, "Based on a solid foundation built on three decades of success delivered by the team at Turnbull, we are confident in our growth plan as we scale up operations and improve efficiencies across our subsidiaries."

Having been in business for over thirty years, Turnbull Oil has developed long-standing relationships with its customers, as is generally typical for a small company. Some customers have been purchasing fuels from the Company since its inception. Customers typically purchase set amounts of fuels on an annual basis. The Company has sixteen wholesales customers, the largest of which represents just 8.5% of sales. The top five retail customers comprise 5.8% of revenue. Overall, the Company has approximately 670 total customers.

Fuels are purchased from local suppliers and then sold and delivered to a broad range of regional customers. This diversification of customer base, mitigates dependence on any one segment, and has allowed the Company to turn a profit and increase revenue even in a down economy. Customers are primarily wholesale businesses, farmers, drillers, private individuals and construction businesses. Historically, the percentage of revenue these customers provide the Company has remained relatively steady from quarter to quarter.

Over thirty years of operation has also enabled Turnbull to develop and run a highly efficient distribution system. Customers span twenty counties or roughly a 120 mile radius from the company's main base of operations in Plainville, Kansas. The Company owns its own distribution system of tankers and haulers, and has incrementally added to its property, plant and equipment without overburdening its balance sheet.

About United States Oil & Gas Corp. (USOG.PK)

United States Oil & 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, United Oil & Gas, Inc. effective January 1, 2010. In addition to its acquisition strategy, the company intends is to acquire and/or develop and deploy proprietary technologies that will explore or extract oil and gas trapped in the earth using the latest technologies that create the smallest ecological footprint as possible. The company has two patents pending that support this ancillary strategy but does not rely on revenue generation from this technology in its financial projections.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. USOG has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect USOG'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 USOG's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. USOG 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.

Contact Information

  • Contact:
    Marcia Levy
    Investor Relations
    Email Contact
    United States Oil & Gas Corp.
    11782 Jollyville Road, Suite 211B
    Austin, Texas 78759, USA