U.S. Energy Development Corp., an exploration and production company, has acquired a 25 percent working interest in the Mascot Project, a stacked-pay asset in core Midland Basin, for $225 million in cash and other consideration.
Located in Midland County, Texas, the Mascot Project includes multiple producing properties, associated midstream assets and upward of 50 undeveloped locations expected to produce about 6,500 barrels of oil equivalent (BOE) per day during 2023. U.S. Energy expects the full development of the project to require another $130 million in capital expenditures during the next two years, bringing the total transaction value to more than $300 million.
The Mascot Project is majority-owned by Midland Petro D.C. Partners, (MPDC) and operated by an affiliate of MPDC, Permian Deep Rock Oil Company.
With the Mascot Project, U.S. Energy has overseen the investment of $575 million during the past 24 months, focusing primarily on near-term drilling oppor