US Oil & Gas Plc submits application to drill three wells in Nevada acreage

US Oil & Gas Plc (LON:USOP) announced it submitted Notices of Staking (NoS) to the Bureau of Land Management (BLM) to drill three wells on the West Play of its acreage in Hot Creek Valley, Nevada.

NoS cover all major aspects of an Application for Permit to Drill (APD), including the Surface Use Plan of Operations, the Well Plat, the Drilling Plan and Reclamation plans for each well.

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In response to the NoS submissions the BLM will schedule site visits and within seven days of those visits provide the necessary feedback to the oil and gas exploration company on its APDs.

The three planned wells are sited on the West Play, where the company’s current basin model indicates a structural analogue of Railroad Valley’s Grant Canyon field.

Seismic, gravity, magnetic and geochemical data support the interpretation that carbonate slip block structures are present and are Grant Canyon analogues, the private firm said.

Grant Canyon historically included the most productive onshore well in the USA, flowing at over 4,000 barrels of oil per day, and produced 21.4mln barrels of oil (data to 2015).

In Hot Creek Valley, potentially analogous structures may feature good reservoir properties and, if charged with hydrocarbons, potentially “excellent productivity”, US Oil & Gas added.