This week, U.S. Energy Development Corporation, the privately held oil and gas exploration and production (E&P) firm that invests directly in North American energy assets on behalf of accredited and institutional investors, announced a new $14.1 million acquisition in the Permian Basin.
Per U.S. Energy, the new acquisition is located in Reeves County, Texas, in the heart of the Delaware Basin, targeting the Wolfcamp Shale formation. The transaction brings U.S. Energy to $86 million in direct Permian Basin investments in the past year, and according to comments the group’s CEO, deal traction may gather speed heading into the year’s home stretch.
“The Permian Basin continues to be an area where we actively pursue investment opportunities on behalf of our partners,” said U.S. Energy CEO and Chairman of the Board Jordan Jayson. “We are on track to continue making investments in this area and intend to reach $150 million in projects by year end 2021.”
Earlier this month, U.S. Energy announced a joint venture with Midland, Texas-based Atlantic Energy Partners to develop and operate three horizontal Permian wells in Ward County, Texas, where U.S. Energy earlier this year completed development of a three well pad at a cost of $30 million.
“This joint venture comes at an ideal time as we expand our footprint in the Permian Basin and the market continues to recover from covid-19 with the drilling of new wells,” Jayson said upon announcing that venture. “We look forward to working with the Atlantic team on this project in the Rio Hondo area and look forward to returning exceptional value to our investors.”
“Since 2008, our team has been focused on pursuing opportunities in the Permian Basin of West Texas; specifically, multi-pay Wolfcamp Shale projects which are full of development potential,” said Atlantic Energy CEO Richard Jennings. “In addition to our own operations, the partnership with U.S. Energy and their ability to execute and operate on task, gives us the ability to accelerate the development of these wells. We look forward to having these wells online in the first half of 2022.”
Since 1980, U.S. Energy has deployed over $1.5 billion in capital across 2,400 oil and natural gas wells in 13 U.S. states and Canada. The firm currently has more than 35 active oil and gas joint venture partnerships, including some of the world’s largest E&P companies.
