USOG Discovery Spearfish in North Dakota Oil Drilling

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USOG known as United States Oil and Gas Corp announced today that in light of recent drilling activity surrounding the discovery of a large new oil formation called Spearfish, with its potentially several billion barrels of oil reserves, it continues to evaluate improved prospects for growth at its North Dakota based operating subsidiary, United Oil & Gas, Inc. United States Oil and Gas Corp is focused on acquiring and growing domestic oil and gas services companies.

North Dakota Department of Mineral Resources Director, Lynn Helms, stated that several thousand wells may ultimately be drilled over the coming years in central Bottineau County, where USOG’s subsidiary United is located. The Company holds approximately six acres of developable land in addition to its bulk fuel plant and delivery operations.

Chairman and CEO Alex Tawse commented, “We are currently working on a plan and timeline to develop our land in Bottineau as well as open a second gas station. Today, there are dozens of exploration wells being drilled and permitted and we are looking to capitalize on the increased activity. Over the coming years, the exploration is expected to provide an across the board increase in demand for refined fuel as well as residential propane and retail gasoline.”

Spearfish is currently less well known than the nearby Bakken Shale Formation with its estimated billions of barrels of accessible oil, the largest since Alaska’s Prudhoe Bay. Newer horizontal drilling techniques that have unlocked the oil reserves at Bakken should also be applicable at Spearfish with its similar formation. Helms added that the oil at Spearfish is at a shallower depth than at Bakken and should be less expensive to extract.