An Irish company may be on the verge of discovering one of the biggest oil lakes in US history.

US Oiland Gas of Dublin has been using ‘groundbreaking’ technologies during its first major drilling project in Hot Creek Valley, Nevada.

Local media reports suggest that the company could be sitting on an enormous oil lake.

“We are looking at two oil systems: light sweet crude with gas condensate and the normal heavier oil that is found in Nevada,”  US Oil and Gas CEO Brian McDonnell told Las Vegas channel KLAS-TV.

“What we would need to do is a number of wells to actually define the geological structure and how much oil would be maintained in the geological structure. One well is not enough.”

KLAS-TV reports that research has been undertaken in an area named Eblana 1, or ‘Nelly’, which is close to oil-rich Railroad Valley, the source of most of Nevada's oil production.

Despite the hype surrounding a possible discovery, the firm pointed out they have yet to make a discovery.

A statement on the company’s website said: “The company wishes to emphasise that testing is not yet complete, and no interim results or information have been communicated to any third party.

“When testing and analysis is complete, the market will be informed of the results via the company's regulatory news service.”

According to their website, the company's primary focus is on onshore oil and gas exploration in Nevada, USA, where U.S. Oil has a large lease acreage.

Watch the report from Las Vegas channel KLAS-TV below:
8 News NOW