Eagle Ford Shale

U.S. Energy Issues Update On Eagle Ford Shale Operations

U.S. Energy Corp. (USEG) issued an update on its operations in south Texas, where the company is developing the Eagle Ford Shale on its leasehold.  The company is involved with Crimson Exploration (CXPO) in this area.

U.S. Energy Corp. reported that the KM Ranch #1 well is currently undergoing completion operations and results will be released shortly.  The company owns a 30% working interest in this Eagle Ford Shale well, which is located on the Leona River lease in Zavala County.  

U.S. Energy Corp. also announced that the company has signed a second participation agreement with Crimson Exploration to purchase an interest in leasehold in the Eagle Ford Shale.  The leases covered by the agreement are located in Zavala and Dimmit Counties, Texas.

U.S. Energy Corp. will purchase a 30% working interest from Crimson Exploration in 7,186 gross acres.  The leases are all currently held by production and produce 200 gross barrels of oil equivalent per day from the Austin Chalk formation.  The company estimates that the leases contain 44 gross drilling locations, and plans to spud the first horizontal well into the Eagle Ford Shale in October 2011.

U.S. Energy Corp. And Crimson Exploration Enter Joint Venture Agreement In The Eagle Ford Shale

U.S. Energy Corp. (USEG) entered into a joint venture agreement with Crimson Exploration (CXPO) to develop acreage prospective for the Eagle Ford Shale in Texas.

U.S. Energy Corp. can earn up to a 30% working interest in 4,675 gross acres or 1,402.5 net acres, all of which is located in Zavala County, Texas.   The company agreed to pay a cash fee up front and a future drilling carry on the Eagle Ford Shale acreage.

U.S. Energy Corp. said that the first well will be drilled in the second quarter of 2011, and the results of this well will be evaluated to determine a 2012 development program.  The company estimates that it has 26 gross or 7.8 net Eagle Ford Shale drilling locations on the acreage.