Eblana 1 drill
U.S. Oil's first exploration well, Eblana #1, was drilled by U.S. Oil's wholly owned subsidiary Major Oil International LLC in May 2012. The drill encountered nine large potential porous oil reservoir intervals (approx. 1,100 feet cumulative net pay) and associated high fracture zones before reaching its target depth of 8,550 feet on 26th May 2012.
Eblana #1 testing / workover Part 1
A production testing and workover programme was devised for Eblana1 after advanced well log processing, petrophysical analysis and reservoir studies. Testing began on early September 2012. Of the potential payzones tested, two zones with Gross Formation Thickness of 380 ft (min. 150 ft NPZ) with average effective porosity of 19% (total porosity of 22 - 24%) were confirmed as oil bearing zones, and an initial low flow rate through the tubing to the surface was achieved. The testing programme did not include potential zones from 3,000 to 4,500 feet.
To allow further data analysis and reservoir modeling, and to allow specialist contractors and equipment to be engaged, the programme was paused and the rig demobilised.
Eblana #1 testing / workover Part 2
On January 18th 2013, the Company announced it had begun mobilisation to resume testing.
On February 6th 2013, the company announced that it has completed preparations for testing its Eblana #1 well. Flow specialists are onsite and the planned testing programme has begun.
Expanded Lease Area
On 24 February and 6th March, 2012, the Company announced it had acquired additional, contiguous, lease acreage in Hot Creek Valley. Through its wholly owned subsidiary, Major Oil International LLC, the Company's total acreage position in Hot Creek Valley is now 22,221 acres (approx. 90 sq. km.).
Oil in Place
Before the Eblana #1 discovery, a February 2012 Competent Person's Report by Forrest Garb & Associates estimated Gross Prospective Resources of 189 MMSTB OOIP (P50) and 67 MMSTB recoverable oil.
Final analysis of the latest geochemical results for US Oil's pre-December 2011 lease area confirms five precisely defined hydrocarbon reservoirs, larger than previously reported, and some subsuming more than one previously reported anomaly. Two of the anomalies are analogous to trends found in the adjacent oil-producing Railroad Valley. Final anomaly sizes, extracted from the latest data, yield a current estimated size of up to 400 acres per anomaly, indicating that, on average, 30% of the lease area shows signs of hydrocarbon alteration.
Passive Seismic (IPDS) survey
A 3-D Infrasonic Passive Differential Spectroscopy (IPDS) survey was recently completed over the whole of the pre-December 2011 lease area. A report prepared by Geodynamics Research confirms a large hydrocarbon anomaly consistent with previously reported 2-D IPDS, geochemical survey results and other data sets. The anomaly covers more than 10 sq.km and shows consistently high Reservoir Hydrocarbon Indicator (RHI) readings. The hydrocarbon pool sits updip and is wholly contained within the lease area, while the source kitchen is underneath or just down-dip nearby. US Oil has identified up to ten drilling targets over the studied lease area.
Competent Person's Report
The Company engaged the services Forrest A. Garb & Associates, International Petroleum Consultants, to prepare a Competent Person's Report to review all data and prospective resources estimates for its pre-December 2011 lease acreage in Hot Creek Valley, Nevada. Forrest Garb reported in February 2012 (see above).
The company anticipates working with Forrest Garb as independent processes and data auditors throughout the forthcoming drilling campaign. Their role will also include devising and maintaining the Company's data room.