USOG gapping up on news from friday! Going to be a good week ;)
United States Oil & Gas Corporation (PINKSHEETS: USOG) is pleased to provide shareholders with an update on the Company's progress generating revenue from its oil and gas distribution business, finalizing acquisitions, developing more environmentally responsible oil and gas extraction technologies, and preparing to list its shares on a higher exchange. USOG acquires oil and gas services companies with historically profitable results, strong balance sheets, high profit margins, and solid management teams in place. Wholly owned subsidiary Turnbull Oil generated $16.5 million in revenue and $447,000 in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in fiscal year 2008.
USOG reports that the acquisition of a second profitable oil and gas distribution company is proceeding on schedule, expected to be completed by year-end. The Company is completing its due diligence and financing for a private, North Dakota-based regional provider of oil and gas products including propane, diesel and gasoline. The acquisition target's 2009 sales are expected to reach $8 million, up from 2008 audited financial results of $7 million. Assets are estimated at a fair market value of $500,000.
USOG strengthened its financial position with the acquisition of Turnbull Oil in May 2009. Plainville, Kansas-based Turnbull Oil is a thriving regional distributor of oil and gas products including propane, diesel, gasoline and lubricants. The company has 300+ customers and has grown steadily since 1965. USOG expects to file its quarterly report, announcing consolidated financial results which include Turnbull's performance in the coming weeks.
USOG is working to upgrade its listing from the Pink Sheets to the OTC Bulletin Board. The Company, which was founded in 2007, intends to move to a more regulated exchange to enhance communication with shareholders and ensure corporate transparency. USOG expects to complete the process in the first quarter of 2010.
USOG develops proprietary, smaller footprint oil and gas exploration and extraction technologies that the Company believes can improve efficiency and reduce damage to the environment. The Company has submitted patent applications for a fiberoptic seismometer for rugged environments and an automated leveling system for portable drilling rigs.
Alex Tawse, CEO of USOG, commented: "USOG has grown quickly by focusing on stable, profitable oil and gas services businesses with strong revenues and long histories of successfully serving customers in America's heartland. With a second acquisition of a revenue-positive company underway and proprietary environmentally responsible extraction technology under development, we are in position to grow sales, expand our geographic reach and increase value for USOG shareholders."
