U.S. Energy Corp. (NASDAQ: USEG) reported on Jan. 12 IP results from its participation in the horizontal drilling program on its existing acreage position targeting the development of the Georgetown Formation in Zavala and Dimmit counties in South Texas.
The Beeler Ranch #1H, a roughly 26,000-ft total measured depth dual-lateral well targeting the Georgetown Formation in Zavala, averaged 1,046 barrels of oil and 1.085 million cubic feet of natural gas over the well’s initial 24 hours on production. The well had a flowing tubing pressure of 1,118 pounds per square inch on a 22/64-inch choke.
Cumulative production over the first eight days generated 7,200 barrels of oil equivalent per day with an 81% oil cut, in line with some of the upper-tier wells recently completed in the Georgetown Formation, according to the company release.
The Beeler Ranch #1H is the initial well in a drilling participation program U.S. Energy announced in October and is operated by privately-held CML Exploration LLC. The well was drilled in November and completed within budget, the release said.
David Veltri, chairman and CEO of U.S. Energy, said the company is “extremely pleased” with the well results and that it successfully establishes economic production from the Georgetown Formation.
“Importantly, the success establishes development potential on the company’s adjacent acreage position in Dimmit County where up to four additional wells may be drilled at an increased working interest for U.S. Energy,” Veltri said in a statement. “Along with our economic North Dakota assets, U.S. Energy is focused on the development of its South Texas acreage position targeting the Eagle Ford, Buda, Austin Chalk and Georgetown formations and is actively pursuing growth initiatives in the area.”
Recommended Reading
Segrist: The LNG Pause and a Big, Dumb Question
2024-04-25 - In trying to understand the White House’s decision to pause LNG export permits and wondering if it’s just a red herring, one big, dumb question must be asked.
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.