Penny Stock News: United States Oil and Gas Corp Strengthens Its Balance Sheet, Reduces Debt

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AUSTIN, TX–(Marketwire – Apr 29, 2011) – United States Oil and Gas Corp (OTCQB: USOG) (PINKSHEETS: USOG), announced that it has achieved progress in reducing its debt and strengthening its balance sheet. The Company, which recently filed its Annual Report on Form 10-K for the year ended December 31, 2010 and its financial results for the fiscal year and quarter ended December 31, 2010, showed improvement in several key performance measures:

The most significant factor in the improvement was the restructuring of $3.75 million in debt owed to Jeff Turnbull. This note was amended to come due on December 31, 2012 earning 2% interest in calendar year 2011 and 10% interest for calendar year 2012. In addition, the April 9, 2011 maturity date on a $750,000 note due to an accredited investor was extended to December 31, 2011.

CEO Alex Tawse commented, “Debt reduction remains one of our top priorities and we have made significant headway. While the conversion of debt to equity impacts our current liabilities, shares outstanding and earnings per share, it continues to be an effective method of meeting our obligations and improving the overall financial health of the Company. Our goal is to be debt free by the end of 2012.”

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Article source: http://www.marketwire.com/mw/release.do?id=1508023&sourceType=3