DENVER, Oct. 24, 2018 (GLOBE NEWSWIRE) — 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.