U.S. Oil and Gas PLC announced that preparations for preliminary testing of the Eblana-3 well are underway. The rig, supplied by C&J well services, is onsite and operations are ongoing. Recent log analysis delineated potential hydrocarbon pay in multiple intervals of which it was planned to perforate and flow test a selected number. Testing was expected to require induction of flow by sustained swabbing after perforation, given the typical characteristics of Nevada hydrocarbon reservoirs, however several mechanical problems in perforation equipment have significantly slowed progress and require significant change to the planned timetable. The intention now is to use the remaining scheduled days to complete the planned perforation programme while the specialist personnel and equipment are on site. However, given constraints on rig and personnel availability, this will leave insufficient time for production test swabbing. The intention, therefore, is to pause operations and carry out the full testing programme after the rig has been rescheduled. Shareholders will be informed of planned recommencement when the availability of rig and associated equipment has been confirmed. The Eblana-3 appraisal well is located on Lease 87414 in Hot Creek Valley, Nevada. US Oil owns a 100% interest in the lease through its wholly-owned subsidiary Major Oil Intl. LLC.