US Oil & Gas believes find worth over $500m
US OIL and Gas, Brian O'Donnell's Irish-owned company which struck an estimated $500m (€400m) worth of oil and gas last week in Nevada, said it's "very optimistic" for the prospects for its second well in the US state following initial flow at its Eblana 1 site.
The company's two-well programme discovered what it believes to be the first substantial oil find in the US state in 32 years and it has been conservatively valued at $514m, or 67 million barrels.
Last week, the company, headed by Dubliner McDonnell and involving three other Irish partners including Peter Whelan, struck "soft" oil and gas in a substantial find at Hot Creek Valley in Nye County, Nevada, which is now undergoing formal tests to determine whether it is commercially viable. Thus far, indicators are good.
The find has sent shares in the company, which is registered in Denmark and traded in the UK, soaring from stg60p on Friday to above £2.
The company said prospects are looking strong for the second well which exhibits similar geological features to the first. "We expect to start the second well within the next three weeks," said Mr McDonnell.
"At the first well, we have discovered a light sweet crude, also a first for Nevada. Well completion and production is a very short additional step since we have all the resources of Bakersfield, California, Salt Lake City, Utah and Denver, Colorado on our doorstep.
"We are even more encouraged by the results of further drilling since the bottom up tests on May 24. We are presently conducting wireline down hole logging tests."