The explorer believes success would represent a “company-making achievement”.
US Oil & Gas Plc (USOP) said it has submitted Notices of Staking for three drill locations – Eblana-7, Eblana-8 and Eblana-13 – in its West Play, in Nevada.
The company said that the proposed well sites are located in one of two zones with interpreted Palaeozoic slide block structures suggested by geophysical and geochemical data. They are in Zone 1 which spans some 4,064 acres. Estimates for the three sites see some 86.5mln barrels of prospective resources of original oil in place.
According to the company, the zones appear to be analogues of Railroad Valley’s Grant Canyon Field and it says that if this is proven by well results it could anticipate “exceptionally high” flow rates.
The first well on the slate is Eblana-7 which is targeting 28.83mln barrels of oil in place.
The company said it is exploring all possible routes to raise the necessary funding, including approaches to institutional investors and private placings.
It added that it has considered the possibility that potential investors may be deterred by the risk that insufficient funds will be raised to drill at least one well, so the company plans to set a deadline of September 30 2021.
By that deadline it must raise sufficient funds to drill a single well, otherwise all funds will be returned to participants.
“Intensive data analysis of the West Play over the past year has revealed two potentially large slip block zones that appear to be excellent analogues of the Grant Canyon field,” said chief executive Brian McDonnell.
“While work on the East Play continues, we are expending maximum effort to achieve at least one drill in the West as soon as possible.”
He added: “A successful well whose productivity even approached that of Grant Canyon would be a company-making achievement. That is our opportunity and our goal, and with the support of shareholders and the investor community, that goal is within reach.”