Texas-headquartered U.S. Energy Development Corp. is diving into the Columbia Project development in the Permian Basin with Shell Oil Co., having acquired an $8.5 million interest in the project.
The firm’s involvement in the project, which carries a $24.1 million total development cost, includes drilling three horizontal wells targeting oil in the Wolfcamp formation in West Texas’ Loving County, U.S. Energy said in a news release Sept. 16.
The move adds to the company’s position in the Permian, where it is also developing three horizontal Wolfcamp wells in nearby Ward County, Texas, on acreage acquired in 2019. The private E&P said it plans to pump $40 million into the Ward County project by the end of the year.
“Our team is always looking for opportunities to provide our investors with high quality projects,” U.S. Energy Jordan Jayson said in the statement. “We have historically found great success in the Permian Basin and look forward to further expanding our footprint in the area.”
Initial production at the Shell-operated Columbia project is expected to start in the fourth quarter.
Recommended Reading
ConocoPhillips to Sell Interests in GoM Assets to Shell for $735MM
2025-02-21 - ConocoPhillips is selling to Shell its interests in the offshore Ursa and Europa fields in the Gulf of Mexico for $735 million.
Summit Midstream Completes $450MM Tall Oak Acquisition
2024-12-03 - Summit said the motivation for the acquisition of Tall Oak Midstream III was to rebalance the company’s portfolio between oil and gas assets.
Howard Energy Partners Closes on Deal to Buy Midship Interests
2025-02-13 - The Midship Pipeline takes natural gas from the SCOOP/STACK plays to the Gulf Coast to feed demand in the Southeast.
Diversified Bolts-On Appalachia Gas Production, Midstream Assets
2025-01-06 - Diversified Energy will buy Summit Natural Resources’ assets, including producing wells and coal mine methane wells, in the southern part of the Appalachian Basin.
Phillips 66 Buys EPIC’s Permian NGL Midstream Assets for $2.2B
2025-01-07 - Phillips 66 will buy EPIC’s NGL assets, including a 175,000 bbl/d pipeline that links production supplies in the Delaware and Midland basins and the Eagle Ford Shale to Gulf Coast fractionation complexes.