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U.S. Energy Development acquires $14M asset in the Permian Basin

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U.S. Energy Development, top exploration and production firm, announced that it has acquired a $14,1 million asset in the Permian Basin; after which the company has total investments in the region for $86 million, deployed within the past year.

Firstly, the new project by the company locates in Reeves County, Texas; is just in the core of the Delaware Basin, and it is targeting production at the Wolfcamp Shale. However, the company did not disclose further technical details about the asset acquired.

Secondly, about the relevance of the acquisition for the U.S. Energy Development, its CEO, Jordan Jayson, said. “The Permian Basin continues to be an area where we actively pursue investment opportunities on behalf of our partners. Indeed, we are on track to continue making investments in this area; and intend to reach $150 million in projects by year end 2021.”

Thirdly, the Permian Basin is one of the oldest oil basins in the United States; most recently is one of the most recognized oil and gas producing regions. It covers approximately 86,000 square miles across New Mexico and Texas. The Permian is divided into three main sub-basins: Midland Basin, Central Basin Platform, and also, the Delaware Basin.

Also recommended for you: U.S. shale to boost production driven by Permian Basin growth. Click here to read.

U.S. Energy Development also has a joint venture with Atlantic Energy

Moreover, the acquisition will position U.S. Energy Development on a strategic location; especially as the Permian Basin is the main driven for oil and gas growth in the U.S. As we reported previously, shale production in the U.S. will reach its highest levels of production this month.

In addition, according to the Energy Information Administration, crude production in the Permian Basin will reach 49,000 bpd in September; while shale production will reach 4,8 million bpd that same month; reaching its highest levels since March 2020.

On the other hand, the news from the company comes just weeks after the company announced that it would invest $21,8 million to develop and operate three horizontal wells within the Permian Basin in Ward County.

Furthermore, as we reported previously such investment was in the form of a joint venture with Atlantic energy Partners. Back then, the U.S. Energy Development confirmed plans to further invest in the region up to $150 million over the next 12 months.

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