U.S. Energy plans Permian push

Company expects to deploy upwards of US$750 million over next 12 months

E&P company U.S. Energy Development Corp. plans to expand its operations in the Permian Basin.

Over the next 12 months, the company expects to deploy upwards of US$750 million, with the majority of this capital earmarked for projects in the Permian.

U.S. Energy said it had robust performance in the Permian Basin in 2023, which included substantial gains in both production and operational efficiency. This year has seen a continued investment into the Permian, highlighted by the recent completion of U.S. Energy-operated JT Morris pad. The 5-well pad has achieved success, coming in below budget while outperforming type curve projections.

“We were very fortunate to contract an active rig to accompany our experienced drilling consultants and our completion team, with the support of our service providers, efficiently executed our completion design. This combination resulted in exceptional drilling and completion performance as illustrated with our cost savings,” said Kevin Duncan, vice president of operations for U.S. Energy. “We appreciate Rick Jennings and Atlantic Energy Partners for providing and connecting our company with the J.T. Morris prospect, as it expands our operated footprint deeper into opportune territories.”

Following closely on the heels of its success with the JT Morris pad, U.S. Energy brought its Westway 2122 two-well pad online in mid-June. Similar to JT Morris, the Westway project was completed under budget and ahead of schedule.

U.S. Energy said it will accelerate its drilling activity in the Permian Basin, with plans to pick up a rig in October 2024 for additional Delaware wells, again partnering with Atlantic. Richard Jennings, CEO of Atlantic Energy

In addition to its operated projects, U.S. Energy has been actively investing in non-operated transactions in the Permian Basin.

As U.S. Energy continues to execute its growth strategy, the Permian Basin is set to remain a central pillar of its operations and contributing to the broader energy sector.

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