Nevada-focused U.S. Oil & Gas announced to investors today that Nevada Bureau of Land Management has agreed to approve a permit allowing for the drilling of its first exploration well, Eblana #1, located on the firm's Hot Creek Valley property. Major Oil International, a wholly owned subsidiary of U.S. Oil & Gas, was awarded with the Application for the Permit to Drill (APD). The company plans to immediately begin preparing the drill site and will give an official spud date for the well in due course.
According to Brian McDonnell, U.S. Oil & Gas chief executive, "the award of a drilling permit is the culmination of many months of effort by the company and marks the most important milestone in U.S. Oil's history to date."
In February, U.S. Oil & Gas hired Nabors Industries, a company that owns and operates hundreds of land drilling, land worker, and well-servicing rigs in North America, to drill the Eblana well. It is predicted that it will take about 25 days to drill the first well to a depth of 8,000 feet, and it is estimated that close to 67 barrels of oil will be recovered. U.S. Oil & Gas will request at least one more well to be built by Nabors Industries following the complement of the current project.