Today, U.S. Energy Development Corporation (U.S. Energy) announced it acquired a $50 million asset in Loving County, Texas. Indeed, this is the most recent strategic acquisition that the exploration & production (E&P) makes in the core of the Delaware Basin.
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Accordingly, the project has wells targeting three of the basin’s most prolific benches; 3rd Bone Spring, Wolfcamp A, and Wolfcamp XY.
Besides, according to U.S. Energy, the new deal brings the Company’s total investment in the Permian Basin to $135 million over the past year.
U.S. Energy on its fifth major dear in 2021
U.S. Energy also said in a media release that this acquisition announcement marks U.S. Energy’s fifth major deal in the calendar year. The firm is similarly planning to invest an additional $400 million among the Permian, Powder River, Eagle Ford, and DJ Basins; specifically over the next two years.
The Company also recently announced another acquisition in the Permian Basin for $14.1 million. Thus, this investment brought the firm’s total investments to $86 million within the past year.
The new project is located in Reeves County, Texas, in the core of the Delaware Basin and is targeting the Wolfcamp Shale.
At that time, Jordan Jayson, CEO and chairman of the board for U.S. Energy, commented in a media release; “The Permian Basin continues to be an area where we actively pursue investment opportunities on behalf of our partners.”
Besides, Jayson added that the Company was “on track to continue making investments in this area.” Accordingly, the CEO said the firm intended “to reach $150 million in projects by year-end 2021.”
More about the Company
Noteworthy, the firm is a privately held oil and gas operator established in 1980. Since then, it has provided direct investments in energy.
U.S. Energy has invested in, operated, and/or drilled more than 2,400 wells in 13 states and Canada. Besides, it has deployed more than $1.5 billion on behalf of its partners. In fact, World Finance named the firm in its 2020 Oil & Gas Awards as the Best Investment Company in North America.
Indeed, the Permian Basin is one of the oldest and most widely recognized oil and gas producing regions in North America. Thus, it covers approximately 86,000 square miles across New Mexico and Texas.
To illustrate, the Permian is divided into three main sub-basins: Midland Basin, Central Basin, and Delaware Basin.
