U.S. Energy Development Corporation (U.S. Energy), an exploration and production (E&P) company focused on the development of energy projects throughout North America, has announced a joint acquisition with EagleRidge Energy LLC. Under the new joint venture agreement, the companies plan to drill up to 12 horizontal wells over the next year in the Barnett Shale region - primarily located in Wise, Denton, and Johnson Counties.
"We are very pleased to announce the joint acquisition of existing natural gas production with EagleRidge, along with our plan for future horizontal development in the Barnett Shale play," said Jordan Jayson, chairman and CEO of U.S. Energy. "This partnership allows us to expand and diversify our resources and manpower into the Fort Worth Basin, while natural gas prices remain elevated."
EagleRidge Energy is a major player in the 16-county Barnett Shale area of North Texas, which includes the operation of more than 2,300 wells across 330,000 gross acres. U.S. Energy's joint acquisition with the legacy exploration company is anticipated to include the following:
Plan to drill 12 new horizontal wells
Net production of 12 million cubic feet (MMCF) per day
Approximately 24,000 net acres (99% held by production)
A commercial cryogenic gas processing plant and associated gathering system
The companies also have joint plans for the recompletion of several existing vertical wells in the Barnett Shale formation by the end of 2022.
"We're excited about our natural gas outlook in the Barnett Shale, a region where we've concentrated our efforts over the past two decades," said Michael Ronca, CEO and director of EagleRidge Energy. "Teaming up with U.S. Energy Development will allow us to increase our resources and widen our exploration efforts in this gas-rich environment."
In addition to this latest exploration plan, U.S. Energy expects to deploy an additional $400-500 million in assets on behalf of itself and partners across the Permian, Powder River and Haynesville basins in the next 12-to-18 months.