U.S. Energy Development Corp., one of the largest sponsors of direct-ownership oil and gas investments, has announced participation in a nine-well oil development project in the Powder River Basin, also known as the PRB.
The company committed $6.6 million to this project on behalf of one of its acquisition funds, the Strategic Energy Income Fund V. As of mid-June, production from the first four wells was averaging approximately 700 barrels per day, which is above type-curve for this stage of production. Revenue associated with these wells is scheduled to be received this summer with an initial distribution to investors in the second half of 2019.
U.S. Energy’s investment in the PRB is targeting wells in the Parkman & Turner formations, located in the southern core of the PRB, an area that has historically been a main source of the Basin’s oil production. The wells range between 7,400 feet and 10,200 feet total vertical depth with 1-mile laterals. The Powder Riv