RIVERTON, Wyo., March 15, 2011 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq:USEG) ("USE" or the "Company"), today provided an update on its oil and gas drilling initiatives in the Williston Basin of North Dakota.
Rough Rider Prospect
U.S. Energy Corp. currently has 14 completed wells and 4 wells awaiting completion with Brigham. The wells awaiting completion are as follows:
- The Brad Olson 9-16 #3H well is anticipated to begin completion operations in mid-March 2011. The company has an approximate 31% working interest ("WI") and an approximate 25% net revenue interest ("NRI") in this well.
- The Kalil Farms 14-23 #1H well is anticipated to begin completion operations in April 2011. The company has an approximate 20% WI and an approximate 16% NRI in this well.
- The MacMaster 11-2 #1H well is anticipated to begin completion operations in May 2011. The company has an approximate 41% WI and an approximate 32% NRI in this well.
- The Hovde 33-4 #1H well well is anticipated to begin completion operations in June 2011. The company has an approximate 25% WI and an approximate 20% NRI in this well. The Hovde well and unit is a direct offset (to the west) of the Lloyd well and unit. The Lloyd well recorded the Company's highest initial production rate of over 4,000 BOE/D in January 2011.
- During the fracing of the Brad Olson 9-16 #2H well, Brigham conducted a micro seismic survey to interpret frac wing performance, and according to Brigham data indicates that frac wings appear to extend laterally approximately 500' on either side of the well bore, or 1,000' in total, per well. Based on the initial results from the micro-seismic monitoring, Brigham recently announced that their findings appear to support development of at least four wells per producing horizon per 1,280 acre spacing unit, or approximately four each Bakken and Three Forks wells per spacing unit. If this theory proves to be correct, this spacing could allow U.S. Energy Corp. to participate in an additional 43 infill Bakken wells, and 59 Three Forks wells within the 15 Brigham units. Overall, this would suggest a total of 120 potential gross drilling locations in the Brigham program, representing a multi-year drilling inventory.