U.S. Energy Corp. Announces Successful Three Forks Test Well
RIVERTON, Wyo., Oct. 4, 2010 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq:USEG) ("USE" or the "Company"), a natural resources exploration and development company with interests in oil and gas, molybdenum, geothermal, and real estate assets, today announced the initial production rate from its State 36-1 #2H well which was recently completed with Brigham Exploration Company (Nasdaq:BEXP) ("Brigham" or "BEXP") in the Williston Basin of North Dakota, and provided an update on its oil and gas drilling initiatives in the Williston Basin.
Williston Basin – Bakken Shale / Three Forks Formation
The State 36-1 #2H well, the first Three Forks test well completed under the Drilling Participation Agreement ("DPA") with Brigham in the Rough Rider acreage area, produced approximately 1,872 barrels of oil and 2.91 MMCF of natural gas per day or 2,356 BOE/D during an early 24-hour flow back period. The well was completed with swell packers and 31 fracture stimulation stages. U.S. Energy's initial working interest in this well is approximately 17% (~13% net revenue interest). The original well in the unit was the State 36-1 #1H, which had an initial production rate of 3,807 BOE/D in the Bakken formation. Oil sales from this well have commenced.The first Bakken formation infill well in the Brad Olson 9-16 unit, the Brad Olson 9-16 #3H, is the next well scheduled to be completed in the program, which is expected to commence in early October. U.S. Energy's initial working interest in this well is approximately 31% (~25% net revenue interest). The well will be monitored with micro-seismic to evaluate frac wing performance. The resulting information will be used to determine optimal spacing for the remaining well or wells in the unit, and will be applied to the rest of the spacing in the program as more data is obtained. The second infill well in the Brad Olson 9-16 unit, the Brad Olson 9-16 #2H well, was also drilled late this summer in the same 1,280 acre spacing unit. U.S. Energy's initial working interest in this well is approximately 31% (~25% net revenue interest). It is expected that this well will be completed in late 2010 or early 2011, after production from the Brad Olson #3H well is evaluated and the seismic data can be processed and applied to the program going forward. As with the original well within the unit (Brad Olson 9-16 #1H, IP rate 2,112 BEO/D), the two additional wells are targeting the middle Bakken formation and have been drilled to a total measured depth of approximately 20,000 feet (~10,000 ft vertical; ~10,000 horizontal) and will be completed with ~30 fracture stimulation stages.
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