US Oil & Gas said it expects to spud its first exploration well in Nevada - the Eblana No.1 - on May 1 this year.
The company's wholly owned subsidiary - Major Oil International LLC - has signed a contract with Nabors Industries Inc to drill the well and at least one other at Hot Creek Valley, the company said.
Nabors Industries is the largest drilling contractor in the world, it added.
US Oil & Gas said moving earth and site construction at Eblana No.1 began on April 3 this year and it is expected that equipment will be moved to the location on April 27.
The targeted drilling depth is around 8,000 feet, it said.
Earlier today, the company revealed it had been delisted from the PLUS Exchange under Rule 79 effective as of yesterday (April 4).
USOP’s shares have been suspended on the PLUS exchange since August 2011.
The group told investors that rule 79 gives the exchange discretion to withdraw issuers from the market and clarifies that securities will be removed no later than six months after the date of suspension.
In a statement, the firm said: “The board of US Oil & Gas is surprised at the PLUS decision, as it had been led to believe that dialogue was continuing. The company will now examine all its options and will shortly announce an alternative trading platform for its shares."
Meanwhile, operational progress continues to be made in Nevada, the firm also said.
In February this year, the company released a newly completed competent persons report. The report assessed the Hot Creek Valley project and gave an estimate of in-place prospective resources of 189 million barrels of oil (P50), of that around 67 million barrels are estimated to be recoverable.
The estimated unrisked net present value for the prospective resources is US$514 million.