U.S. Energy Corp. Announces Spudding of Well Targeting the Georgetown Formation in Zavala County, TX
October 24 2018 - 6:00AM
U.S. Energy Corp. (NASDAQCM: USEG) (“U.S. Energy”
or the “Company”) today announced its participation in and the
spudding of the Company’s first drilling prospect of 2018 targeting
the Georgetown formation in Zavala County, Texas.
The J. Beeler No. 1 was spudded on October 18,
2018 and is expected to be drilled to total depth in approximately
three weeks. U.S. Energy holds a 30% working interest in the
well and will fund its portion of the drilling through existing
cash on hand. Four additional wells are anticipated to be
drilled on the Company’s existing Zavala County acreage position
during 2019.
This is the second well to be drilled within the
Company’s South Texas acreage position covering Dimmit and Zavala
Counties. Both wells have been drilled with CML Exploration,
which is conducting the drilling operations. The meaningful success
of the offsetting initial well, the Beeler Ranch No. 1, which was
drilled in November 2017 in partnership with CML Exploration, has
been sustained as the well has produced more than 126,000 barrels
of oil and 161,000 MCF of gas during the first ten months of
production. The well is forecasted to generate an ultimate
recovery of greater than 800,000 barrels of oil and 750,000 MCF of
gas. The performance of the Beeler Ranch No. 1 well generated
a three-month payout on initial capital and a greater than 60%
internal rate of return.
About U.S. Energy Corp.
We are an independent energy company focused on
the lease acquisition and development of oil and gas producing
properties in the continental United States. Our business is
currently focused in the Williston Basin of North Dakota and South
Texas. We continue to focus on increasing production, reserves, and
cash flow from operations while maintaining low levels of
leverage. More information about U.S. Energy Corp. can be
found at www.usnrg.com.
Forward-Looking Statements
This press release may include “forward-looking
statements” within the meaning of the securities laws. All
statements other than statements of historical facts included
herein may constitute forward-looking statements. Forward-looking
statements in this document may include statements regarding the
Company’s expectations regarding the Company’s operational,
exploration and development plans; expectations regarding the
nature and amount of the Company’s reserves; and expectations
regarding production, revenues, cash flows and recoveries. When
used in this press release, the words "will," "potential,"
"believe," "estimate," "intend," "expect," "may," "should,"
"anticipate," "could," "plan," "predict," "project," "profile,"
"model," or their negatives, other similar expressions or the
statements that include those words, are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to,
fluctuations in oil and natural gas prices, uncertainties inherent
in estimating quantities of oil and natural gas reserves and
projecting future rates of production and timing of development
activities, competition, operating risks, acquisition risks,
liquidity and capital requirements, the effects of governmental
regulation, adverse changes in the market for the Company’s oil and
natural gas production, dependence upon third-party vendors, and
other risks detailed in the Company’s periodic report filings with
the Securities and Exchange Commission.
Corporate Contact:
U.S. Energy Corp.
Ryan Smith
Chief Financial Officer
(303) 993-3200
www.usnrg.com
US Energy (NASDAQ:USEG)
Historical Stock Chart
From Mar 2024 to Apr 2024
US Energy (NASDAQ:USEG)
Historical Stock Chart
From Apr 2023 to Apr 2024