U.S. Energy Development Corp. recently brought online a five-pad J.T. Morris pad (pictured) in Reeves County, Texas. (Source: U.S. Energy)
U.S. Energy Development Corp. continues to expand its footprint in the Permian Basin and beyond with operated and non-operated investment.
Fort Worth, Texas-based U.S. Energy recently brought online a five-well J.T. Morris pad in Reeves County, Texas, according to records filed with the Texas Railroad Commission (RRC) in May.
The J.T. Morris wells were drilled at an average vertical depth of around 10,610 ft targeting the Bone Spring and Wolfcamp intervals.
“We were very fortunate to contract an active rig to accompany our experienced drilling consultants,” said Kevin Duncan, vice president of operations for U.S. Energy, in a statement. “Our completion team with the support of our service providers efficiently executed our completion design.”
“This combination resulted in exceptional drilling and completion performance as illustrated with our cost savings,” he said.
U.S. Energy developed the J.T. Morris pad with support from Atlantic Energy Partners.
Following the J.T. Morris project, U.S. Energy said it brought online a two-well Westway 2122 pad in Reeves County in mid-June.
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U.S. Energy expects to allocate more than $750 million across its shale footprint over the next 12 months, but the majority of that spend is earmarked for the Permian Basin.
The company plans to pick up an additional rig in October to accelerate drilling activity in the Delaware Basin.
U.S. Energy, partnering again with Atlantic Energy, plans to begin work on a new five-well pad in Reeves County this fall.
“Jordan Jayson and his team at U.S. Energy have done a great job developing our Delaware Basin prospects on time, under budget and with wells hitting our type curves,” said Atlantic Energy CEO Richard Jennings in the statement.
U.S. Energy deployed over $600 million and closed more than 19 acquisitions in 2023, virtually all of which were in the Permian.
The company made a $225 million investment in the Mascot project, a stacked pay asset in the core of the Midland Basin.
The deal included a 25% stake in the Midland County project, which is majority owned by Midland Petro D.C. Partners, for $225 million in cash.
U.S. Energy has also continued investing in its non-operated platform in the Permian and other resource plays.
Last year, the company drilled capital into the Haynesville Shale, the Barnett Shale and the Powder River Basin.
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