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US Oil & Gas Corp.: United States Oil & Gas Corp. Pending Acquisition Posts 35% Higher Sales, Takes Greater Market Share, Expec

^{Published on 2009-12-13 23:32:44 - Market Wire}
 

AUSTIN, TX--(Marketwire - December 14, 2009) - United States Oil & Gas Corporation (PINKSHEETS: [ USOG ]), a growing oil and gas products, services and technology company, today announced an update regarding one of its pending acquisitions, United Oil ("United"), a North Dakota-based distributor of refined fuels and other oil-based products. On a year-to-date basis through October 31, 2009, gasoline sales at its convenience outlet increased by 35%. Sales grew to nearly 630,000 gallons compared 467,000 gallons for the same period last year. Despite the rise in oil prices, demand remains inelastic as customers are neither cutting back on driving nor on heating their homes.

As reported December 7, 2009, USOG has in place a preliminary agreement for the purchase of United. The transaction is expected to close before year-end. Under the terms of the agreement, which will go into effect January 1, 2010, and is subject to a number of conditions including the receipt by both parties of certain consents and releases, United will be a wholly owned operating subsidiary of USOG. Revenue at United 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.

Located in the northern central portion of North Dakota, United is a profitable oil and gas distribution company which sells diesel, race gasoline, propane, and lubricants to 375+ customers including regional businesses, farms, and private residences. The company offers personal customer service and reasonable pricing, comparative advantages that have helped attract new customers and increase market share.

Improved volume at the pump has also driven in-store volume, raising sales by 28% over last year. Greater in-store sales also help boost gross profits, as the change in status to a grocery store has meant new vendor contracts. The length of the new contracts is generally for a year. Some of the major brands include Coke, Pepsi, Wholesale Supply Co., which provides most of the grocery items and all of the top brand cigarettes, and Deli Express.

About United States Oil & Gas Corp. (PINKSHEETS: [ USOG ])

United States Oil & Gas Corp. is focused on the domestic oil and gas services sector, acquiring oil and gas services 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.