U.S. Oil & Gas Plc announced that appraisal well Eblana-3 spudded in Hot Creek Valley, Nevada on April 17th 2018, with drilling now underway. The well is designed to investigate reservoir and hydrocarbon characteristics and to prove up a portion of the Company’s Contingent Resources to Proved Reserves. The well is situated updip of, and a 1,200 metre step-out from, the Company’s discovery well Eblana-1, and is on the same structure. The well is located on Lease 87414, which is held and operated by US Oil’s wholly owned subsidiary Major Oil Intl LLC. Major Oil holds approximately 88sq kms of contiguous leases in Hot Creek Valley. Eblana-3 is being drilled by Capstar Drilling’s Rig 330 and is a vertical well. Capstar Drilling is an Oil States International company. Eblana-3 drilling and logging operations will run 24 hours. Drilling duration for Eblana-3 will be determined as operations proceed, as will final target depth. A minimum depth of 7,000ft is planned, although drilling may continue to the Palaeozoics. Total operations with the Capstar 330 rig are expected to be up to 45 days. Once Eblana-3 drilling is complete, well testing will be carried out. In the event of successful testing, the well may be completed and further testing performed. The Company will announce test results after the end of drilling, logging and preliminary testing operations. US Oil’s view at this time is that the drilling of a second well, Eblana-6, will be decided upon in the light of results from Eblana-3 and the accrued costs at each stage. The Eblana-6 pad, surface conductor pipe, access ways and other services are already in place. The rig transport distance from the Eblana-3 pad to Eblana-6 is 1,400 metres.