AUSTIN, TX -- 11/09/09 --
United States Oil & Gas Corporation (PINKSHEETS: USOG), a growing oil and gas products, services and technology company,
reaffirmed today that it remains on-track with its preliminary agreement to
acquire a North Dakota-based oil and gas distributor of refined fuels and
other oil-based products. The company is pleased to report that it has
increased its residential propane business customer base by 30%
year-to-date through October 31, 2009. Compared to the same period last
year, sales grew by over 94,000 gallons along with a material amount of
backlog of new customer orders.
With a customer base less impacted by the residential mortgage crisis that
has affected many other parts of the country, demand for fuels has remained
relatively steady. Located in the northern central portion of North Dakota,
the target is a profitable oil and gas distribution company which sells
diesel, race gasoline, propane, and lubricants to regional businesses,
farms, and private residences.
Revenue at the target company is expected to total $8 million for the year
ending December 31, 2009, with steady growth moving forward. Revenue for
2008 totaled $7 million, to date, the company's best on record.
The company owns a bulk storage plant, a fleet of tanker trucks, and a
retail outlet. Management has over 30 years experience in the industry, and
as outlined in the initial agreement, will be contracted to remain with the
business for a minimum of three years.
The acquisition is expected to be finalized by year's end, subject to
completing due diligence and negotiating for financing. USOG will keep the
market fully updated on this acquisition as well as others it is currently
working on closing.
About USOG
United States Oil & Gas Corp. is focused on the domestic oil and gas
services sector, acquiring companies with historically profitable results,
strong balance sheets, high profit margins, and solid management teams in
place. USOG also develops innovative technologies to increase oil and gas
extraction with the smallest environmental footprint.
This Press Release may contain certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. USOG
has tried, whenever possible, to identify these forward-looking statements
using words such as "anticipates," "believes," "estimates," "expects,"
"plans," "intends," "potential" and similar expressions. These statements
reflect USOG's current beliefs and are based upon information currently
available to it. Accordingly, such forward-looking statements involve known
and unknown risks, uncertainties and other factors which could cause USOG's
actual results, performance or achievements to differ materially from those
expressed in or implied by such statements. USOG undertakes no obligation
to update or provide advice in the event of any change, addition or
alteration to the information catered in this Press Release including such
forward-looking statements.
Contact:
Investor Relations:
+1-512-464-1255
Email Contact
United States Oil & Gas Corp.
11782 Jollyville Road, Suite 211B
Austin, Texas 78759, USA
www.usaoilandgas.com
