Atlantic Energy a renowned exploration and production firm, has partnered with its counterpart U.S. Energy Development, for a robust project in the heart of the Permian Basin; the development and operation of three horizontal wells in Ward County, Texas.
Firstly, the agreement with Atlantic Energy, a true leader in its field, strengthens U.S. Energy’s existing position in Ward County; where earlier this year, the company completed and put online a three well pad at a developmental cost of approximately $30 million.
Consequently, the partnership highlights U.S. Energy’s strength as an operator with more than 40 years of experience, coupled with its reputation for professional excellence in closing deals; however, it also speaks volumes of Atlantic’s position as a strong E&P firm; known for its technical expertise and ability to assemble tier one prospects.
Secondly, both companies are tightly aligned on their commitments to Environmental Stewardship; also, Social Responsibility and Corporate Governance (ESG), a framework that is rooted in their respective core values.
Thirdly, in this regard, the three wells project oil production in the Wolfcamp Shale; the companies expect that the projects will come online around the first quarter of 2022; and will carry a total project development cost of approximately $28 million.
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Atlantic Energy expects to have well ready by 2022
Moreover, the past year U.S. Energy worked hard in the Permian Basin; its activity includes closing on $86 million of projects; also, the firm projects to invest more than $150 million over the next 12 months.
On the other hand, about the relevance of the agreement, Jordan Jayson, CEO of U.S. Energy, said. “This joint venture comes at an ideal time as we expand our footprint in the Permian Basin; and the market continues to recover from COVID-19 with the drilling of new wells. Consequently, we look forward to working with the Atlantic team on this project in the Rio Hondo area; also, and look forward to returning exceptional value to our investors.”
On the other hand, Richard Jennings, CEO of Atlantic Energy, said. “Since 2008, our team has been focused on pursuing opportunities in the Permian Basin of West Texas; specifically, multi-pay Wolfcamp Shale projects; which are full of development potential.”
Finally, he also remarked. “In addition to our own operations, the partnership with U.S. Energy and their ability to execute and operate on task, gives us the ability to accelerate the development of these wells. We look forward to having these wells online in the first half of 2022.”
