(Source: PrimeNewswire)
RIVERTON, Wyo., Oct. 16, 2009 (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 Brad Olson 9-16 #1H Bakken well and provided an overall operations update regarding its various interests in the oil and gas sector.
Williston Basin -- Bakken Drilling Program
The Brad Olson 9-16 #1H flowed at an initial 24-hour production test rate of approximately 1,805 barrels of oil and 1.84 MMCF of natural gas per day or 2,112 BOE/D. The well was completed with swell packers and 28 fracture stimulation stages. USE's initial working interest in this well is approximately 61% (~48% net revenue interest), and sales from this well are expected to commence immediately. The Company believes this well is the first successful 28 stage fracture stimulation completion in the Williston Basin.
The BCD Farms 16-21 #1H well has been drilled to a total measured depth of 19,426 feet. Upon completion of the drilling a sleeve was run into the hole with 28 swell packers and completion initiatives are expected to commence in late October. The initial production flow rate for this well will be announced following the completion of a 24-hour flow rate test. USE's initial working interest in this well is approximately 45% (~35.55% net revenue interest).
Subsequent to the BCD Farms drilling operations being completed, two additional wells have been spud and are currently drilling to depth. The two wells are the Lee 16-21 #1H (~60% initial working interest) and the Strand 16-9 #1H (~40% initial working interest). As with the Brad Olsen and the BCD Farms wells, both the Lee and the Strand are targeting the middle Bakken formation, and are planned to be drilled to a total measured depth of approximately 20,000 feet (~10,000 ft vertical; ~10,000 horizontal). To date, the drilling of the Lee 16-21 #1H well has progressed to the horizontal portion of the well bore, and the Strand 16-9 #1H well has reached a total measured depth of 9,960 feet. Once each well is drilled to approximately 20,000 feet total measured depth, it is anticipated that each well will take approximately 30 days to complete. Subsequent to the two above mentioned wells being drilled, the two drilling rigs are then expected to be mobilized to two additional well locations in early November.
As a result, it is anticipated that the first six wells of the previously announced Drilling Participation Agreement with Brigham Exploration Company (Nasdaq:BEXP) will be drilled before the end of the year and that at least four of the six wells will have been completed by this time.
Gulf Coast
The Bluffs well, partnered with PetroQuest Energy, L.L.C.
