Project Profile
Location: the Maverick Basin, Zavala County, South Texas
Area: 1,302 sq miles
Drilling Depth: 4,000 ft (1219m) - 6,000 ft (1829m)
Under the terms of a participation agreement with Crimson, U.S. Energy will earn a 30% working interest (22.5% net revenue interest) in approximately 4,675 gross contiguous acres (1,402.5 net mineral acres) through a combination of a cash payment and commitment well carry. All future drilling and leasing will be on a heads up basis.
The prospect is an Eagle Ford shale oil window target. Crimson will operate and tentatively plans to spud the first well in the area. The well is planned to be drilled to a total drilling depth of approximately 12,500 feet (~6,000 ft. vertical, ~6,500 ft. horizontal), and to be completed with 14 fracture stimulation stages.
If successful, the well is planned to be put on production for several months to evaluate well performance and in order to properly plan and budget for an aggressive 2012 drilling program. It is estimated under current spacing that there is a potential for up to 26 gross (7.8 net) drilling locations on the acreage.
Operators:
Crimson: Operator
U.S. Energy : 30% working interest