U.S. Energy Acquires Interest in New Mexico's Poker Lake Project
Texas-based E&P company U.S. Energy Development Corp. (USEDC) has entered into an agreement with an undisclosed seller to acquire certain working interests in the Poker Lake project located in Eddy County, New Mexico, for a total consideration of US$16 million. The total development cost for the project, which is operated by XTO Energy Inc., a wholly-owned subsidiary of Exxon Mobil Corp., is estimated to be in excess of US$97 million.
In September this year, USEDC had also entered into an agreement to invest in and co-develop the Columbia project located in Loving County in West Texas. The Poker Lake project further expands USEDC’s investments within the Permian basin. The project includes nine horizontal wells located in the Delaware basin and primarily targets oil producing zones in the Wolfcamp Shale formation. The drilling on the project is currently in progress and initial production is targeted to commence in early 2021.
“The Poker Lake project is located in an Opportunity Zone, which is attractive because of the additional tax incentives offered in these areas. Our team is focused on providing our investors and institutional partners with excellent investment opportunities. We are looking forward to working on this project and expanding our footprint in the Permian Basin,” said Jordan Jayson, Chairman & CEO of USEDC.
Privately-held USEDC is engaged in the exploration, development, and production of oil and natural gas across the United States and Canada, with a primary focus on operations in the Appalachian, Williston, Anadarko, Eagle Ford, and Permian basins.