AUSTIN, TX, December 7, 2009
United States Oil and Gas Corp Reaches Agreement to Acquire 100% of North Dakota Services Company
United States Oil and Gas Corp (Pink Sheets: USOG) a growing oil and gas products, services and technology company, is pleased to announce that it has in place a preliminary agreement for the purchase of United Oil & Gas, Inc. ("United") of Bottineau, North Dakota. 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.
The purchase includes all property, equipment and six acres of developable land. Besides United Oil and Gas, Inc., United Propane, United C-Store and an additional gas station and C-store that will soon be operational are part of the acquisition. Management, which has over 30 years experience in the industry, is contracted to remain with the business for a minimum of five years. The company was started in 2003, and includes a bulk storage plant, and a fleet of tanker trucks.
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. Compared to its two main competitors, the company offers personal customer service and reasonable pricing. These advantages have helped attract new customers and increase market share.
Alex Tawse, CEO of USOG commented, "We are excited to bring United on board. Along with Turnbull, our first acquisition completed in May, USOG has achieved its two main strategic goals for 2009. We look forward to 2010 and continuing to grow our businesses, satisfying both our customers and shareholders alike."
About United States Oil & Gas Corp.
United States Oil and Gas Corp is focused on acquiring and growing domestic oil and gas services companies. The Company targets small to mid size family-run businesses with historically profitable results, strong balance sheets, high profit margins, and solid management teams in place.
The Company has tried to identify any forward-looking statements contained in this press release using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company'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 the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company 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.
