U.S. Energy Corp. (NASDAQCM: USEG) ("U.S. Energy" or the "Company") announced on Thursday, December 6, initial production results from its recently announced horizontal drilling program on its existing acreage position targeting the development of the Georgetown formation in Zavala and Dimmit Counties, Texas. This is the second participation well for the Company in the development program.
In Zavala County, Texas, the J. Beeler #1H, an approximate 26,000 foot total measured depth dual-lateral well targeting the Georgetown formation, averaged approximately 1,255 barrels of oil and 1,016 mcf of natural gas over the well's initial 24 hours on production. This is the Company's second 2018 well that has been in line with some of the best wells targeting the Georgetown formation that have been drilled to date.
Well Name USEG WI% Initial 24-Hour Rate 30-Day Rate 90-Day Rate
J. Beeler #1H 30% 1,424 boepd (87 % oil)
Beeler Ranch #1H 6% 1,227 boepd (85 % oil) 915 boepd (85% oil) 820 boepd (87% oil)
David Veltri, Chairman and CEO of U.S. Energy, stated, "We are highly encouraged with the results from the J. Beeler #1H well, the second well in U.S. Energy's previously announced drilling participation program. The CML Exploration operated, dual-lateral well in Zavala County continues to successfully establish highly economic production from the Georgetown formation over the Company's acreage position. The results of the well further confirms the development potential on the Company's adjacent acreage position in Dimmit County where we expect up to three additional wells to be drilled during 2019 at a significant working interest to U.S. Energy. The Company continues to focus on exploiting opportunities across our legacy acreage positions while pursuing acquisition opportunities that will provide a platform for longer term operated growth."
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.