U.S. Energy Corp. Provides Operations Update For Buda Limestone Wells

April 10, 2014 Kirk Eggleston

U.S. Energy Corp. Oil & Gas Project Area Map

This week, U.S Energy Corp. provided its operations update for several of it's Zavala and Dimmit County wells targeting the Buda Limestone formation, which lies just underneath the Eagle Ford Shale. The Beeler #6H well, located in the company's Booth-Tortuga acreage block, was completed in March 2014, and had a peak early 24-hour flow back rate of 1,185 boe/d, with a 91% oil yield. The company has a 30% working interest and a 22.5% net revenue interest in 12,457 acres of the Booth-Tortuga acreage block. Contango Oil & Gas Company is the operator.

U.S. Energy Corp. also participates with U.S. Enercorp in approximately 4,243 gross (636 net) acres in the Big Wells acreage block in Dimmit County, TX. The leasehold is contiguous to the southwestern portion of the Booth-Tortuga acreage block.

“Having participated in six Buda wells with Contango and two with U.S. Enercorp., we are now beginning to gain a broader understanding of the extent of the play as well as the production response rates. Looking forward, we remain optimistic about the overall potential of the Booth-Tortuga and Big Wells prospects yet we still have much more drilling to do to fully understand the extent of the natural fractures in the region. Additionally, we believe that the potential exists to enhance the production profiles of our wells through down hole stimulation as warranted.”

— U.S. Energy Corp. CEO, Keith Larsen

U.S. Energy Corp. Buda Limestone Well Spud Dates

Beeler #8H (Contango, Operator)

Spud on 2.06.14 - peak early 24-hour flow back rate of 886 boe/d; 30-day average production of 347 boe/d

Willerson #2H (U.S. Enercorp, Operator)

Spud on 2.03.14 - peak early 24-hour flow back rate of 634 boe/d

Beeler #6H (Contango, Operator)

Spud on 2.10.14 - peak early 24-hour flow back rate of 1,185 boe/d

Beeler #5H ST (Contango, Operator) & Beeler Unit A #9H (Contango, Operator)

Spud on 3.25.14 and 3.26.14 respectively. Currently these wells are being drilled to their target depths.

Newfield's Eagle Ford Production Is Set to Surge at Year-end

December 4, 2013 R.T. Dukes

Newfield Exploration's Eagle Ford production grew 9% from the second quarter to the third quarter to average 8,200 boe/d. Fourth quarter production is expected to surge to more than 12,000 boe/d as well pads in the West Asherton area come online.

Growth in the last few months of the year puts Newfield on pace to grow production 70% year over year. The company's production is approximately 56% oil, 19% NGLs, and 24% natural gas.

Newfield is drilling horizontal laterals that range from 5,000-10,000 ft in the West Asherton Field in Dimmit County and has been able to drive well costs down approximately 20% to $7.3 million.

“We have even greater confidence in our ability to hit our corporate level targets and we intend to deliver on our promise of doubling liquids production from our four key plays by the end of 2015.”

— Lee K. Boothby, CEO

Newfield Plans Fewer Wells, but Strong Growth in 2014

Newfield lowered its operated rig count from two to one in the third quarter.

The company plans to drill fewer wells next year, 20 in 2014 compared to 36 in 2013, but still expects play-wide production to grow 30%.

Read the company's third quarter press release at newfield.com

Chesapeake's Eagle Ford Wells Look Better and Better

November 28, 2012 R.T. Dukes

Chesapeake's Eagle Ford well production rates are getting better and better. The company now has hundreds of wells producing and those data points allow the company to improve its drilling and completion processes.

In the third quarter of 2012, Chesapeake brought 124 wells to production. 115 of the wells (93%) produced at peak rates of more than 500 boe/d and 43 wells (35%) produced at peak rates of more than 1,000 boe/d. That's up from 91% of wells producing 500 boe/d or better and 31% of wells producing 1,000 boe/d or better in Q2 2012 when 121 wells were completed. In the first quarter of 2012, only eight of 60 wells brought online produced more than 1,000 boe/d. I'd say that's a pretty good improvement in just six months time. CHK is now completing more than three wells a week that produce more than 1,000 boe/d.

The company highlighted the following wells in its Q3 press release:

The Faith-Yana A Unit C1H in Dimmit County achieved a peak rate of approximately 2,175 boe per day, consisting of 1,580 bbls of oil, 295 bbls of NGLs and 1.8 mmcf of natural gas per day;
The Gates 010-CHK-B 1286-D3H in Webb County achieved a peak rate of approximately 2,100 boe per day, consisting of 660 bbls of oil, 655 bbls of NGLs and 4.7 mmcf of natural gas per day; and
The Shining Star Ranch B 1H in La Salle County achieved a peak rate of approximately 1,580 boe per day, consisting of 1,450 bbls of oil, 80 bbls of NGLs and 0.3 mmcf of natural gas per day.