U.S. OIL and GAS plc's (Ticker: USOP) core activities are in the USA, with ongoing exploration activity in Nevada where the company holds a large lease acreage.
Why explore in Nevada?
- Thrust belts and associated foreland basins provide a quarter of the earth's known oil reserves. These are found where the western North American Cordillera coincides with organic-rich hydrocarbon source rocks, including the Mississippian Antler foreland basin of western Utah and central Nevada.
- As with thrust belts worldwide, some oil is trapped in giant thrust structures. Typically, oil seeps occur above the giant structures — except in Nevada where a blanket of Oligocene volcanic rocks and detritus buried and sealed the oil seeps.
- Some of these concealed Nevada oil seeps, including the most prolific North American onshore flowing oil well found in ten years, are unconformity-related, commercial grade oil accumulations.
- Geological studies indicate a lacustrine paleogeographical environment for the Great Basin, contrary to the accepted marine paleogeography for the region.
- The most extensive proprietary study of source rock in the Great Basin to date reveals that the Mississippian Antler foreland basin is made up of transgressive and regressive lacustrine sequences and Stigmaria root zones with rootlets penetrating bedding planes. Palynomorph biostratigraphy from oil wells confirms that the regressive sequences are mostly organic-rich lacustrine shales or lakebeds.
- These facts about a lacustrine origin for Great Basin source rock contrast sharply with the deeply entrenched marine theory of USGS geologists.
- Such extremely complex geology means that what you see at the surface does not necessarily reflect what exists 7,000 feet below.
- Conventional 2D and 3D seismology has not been able to identify oil bearing forms; however, Antler Forland basin contains enough organics to generate huge quantities of oil.
- Geologists believe there are at least 30 geologic structures each containing in excess of 1 billion barrels of oil.
- Identifying the anticlines becomes a real possibility with state-of-the-art seismology, three dimensional models, well information and high quality surface geologic maps. 2-D and 3-D IPDS promise to revolutionise exploration in this previously difficult area.