U.S. Energy Invests in the Columbia Project in West Texas
Arlington, Texas-based E&P company U.S. Energy Development Corp. has entered into an agreement to invest in and co-develop the Columbia project located in Loving County in West Texas. U.S. Energy will invest US$8.5 million in the project, whose total development cost is estimated at US$24.1 million to develop three horizontal Permian basin wells.
The project primarily targets oil-producing zones in the Wolfcamp Shale formation and is currently operated by Shell Oil Co., a subsidiary of super-major Royal Dutch Shell Plc. Drilling and completion operations on the project have already been completed, and initial production is targeted to begin in Q4-2020.
“Our team is always looking for opportunities to provide our investors with high quality projects. We have historically found great success in the Permian Basin and look forward to further expanding our footprint in the area”, said Jordan Jayson, Chairman & CEO of U.S. Energy.
Privately held U.S. Energy is engaged in the exploration, development, and production of oil and natural gas across the U.S. and in Canada, with a primary focus on the Appalachian, Williston, Anadarko, Eagle Ford, and Permian basins. In 2019, the company acquired a large operated position in Ward County, Texas, and is currently developing 3 horizontal Wolfcamp wells with plans to deploy US$40 million in the project by the end of this year.