US Oil & Gas plc (USOP) continues to work towards the implementation of a fracking programme on the Eblana 3 well, though any timetable is contingent on regulatory approval.
The company, in its full-year financial results statement, said that it also continues planning for corporate development and a new stock market listing though it noted that these plans would only be realised if it can produce oil at commercial quantities.
With attention on the proposed fracking at Eblana, the company explained that it submitted an application for a permit to frack the well along with a hydrogeology report, subsequent dialogue with the regulator and additional data collection are now ongoing.
“Every effort is being made by the company to satisfy requirements, but no timescale can be offered for the completion of the process,” the company said.
Meanwhile, the company added that it has now integrated the Eblana 3 well data with all other data – including geochemical, VSP, geomagnetic and geophysical data – to generate new targets for its next drilling campaign.
“The company views the results of these latest studies as highly encouraging, supporting the belief that its Hot Creek Valley lease area features a major oil system analogous to that in Railroad Valley,” it added.
“Of considerable importance for the cost of future drills is the finding that the areas now seen as of greatest potential require much shallower wells than have been necessary to date, as both Tertiary and Palaeozoic strata are found to be much closer to the surface.
“Highly prospective targets are clearly emerging from these studies and will form the basis of a multi-well development proposal now being prepared.”
In terms of financial results, USOP reported a US$1.06mln loss for the twelve months ended 31 July. It raised US$2.21mln during the year, completing two share placings.
The company said it is “in a strong financial position to move forward on both operational and corporate fronts.”
At the end of July, it had US$1.9mln of cash and equivalents.