Why USOG Should Be on Your Radar NOW
USOG is focused on generating value for shareholders through the acquisition of profitable oil and gas drilling and service companies and the development of drilling technology for “greener” oil and gas exploration and production.
USOG leverages a proprietary prospecting system to identify and acquire companies with historically profitable results, strong balance sheets, high profit margins and solid management teams in place.
Wholly owned USOG subsidiary Turnbull Oil generated $16.5 million in revenues and $447,000 in EBITDA in fiscal year 2008. Turnbull posted $3,500,000 in revenue and $591,000 in EBITDA profit for the quarter ended September 30, 2009. The subsidiary generated sales revenue of $2,700,000 and EBITDA of $14,000 for the prior quarter ended June 30, 2009.
USOG has signed a letter of intent to purchase a growing private North Dakota-based provider of oil and gas products including propane, diesel, and gasoline. The company’s 2009 sales are expected to be $8.0 million, up from 2008 audited financial results of $7.0 million.
By providing access to financial markets, expanded marketing opportunities and operating expense efficiencies, USOG works to build growth and higher long-term profits for subsidiaries.
The company is actively engaged in developing technology that supports green oil and gas operations. USOG has two patents pending for technologies including a simple fiberoptic seismometer for rugged environments and an automated leveling system for portable drilling rigs.
USOG is working to upgrade its listing from the Pink Sheets to the OTC Bulletin Board in Q1 2010. The company reported that it intends to move to a more regulated exchange to enhance communication with shareholders and ensure corporate transparency.
USOG is growing quickly with what we believe is spectacular potential for increasing revenue and company value. Its current share price is a bargain considering where we feel the stock is heading.
USOG’s operating subsidiary provides steady profits and a shield from fuel price fluctuations.
USOG offers an excellent opportunity to invest in the oil and gas sector with reduced risk from volatile oil and gas prices or exploration. Because USOG is currently focused on oil and gas distribution services rather than exploration, there are no dry holes. And while oil and gas prices have fluctuated widely in the last two years, the company’s established distribution businesses have a set markup of 10 to 12% on fuel and up to 40% on propane. Revenues may fluctuate with fuel prices, but profits are consistent year to year.