US Energy Corporation to Acquire Bakken Assets for US$17.8 Million

US Energy Corporation has  entered into a Memorandum of Understanding  to acquire oil and natural gas producing properties targeting the Bakken formation of North Dakota, the company announced on the 22^nd August.

The US$17.8 million agreement with APEG, an affiliate of APEG Energy II, LP, would allow for the company to acquire all interest in 67 wells and acquire approximately 1.1 million barrels of oil equivalent of proved developed reserves and 400 barrels of oil equivalent per day of current production across 1,600 net acres.

US Energy expects the transaction to create more development opportunities and acreage swaps which will allow the company to continue consolidating its leasehold position in the area.

Upon closing, the transaction will “approximately double the company’s existing production base in a highly economic area in which it has significant experience,” US Energy’s CEO David Veltri, said.

“While management has been primarily focused over the past several quarters on the divestment of both legacy mining obligations and underperforming non-operated oil and gas assets, upon the closing of the transaction, we would complete an initial step on our mission to build shareholder value with the cooperation and support of our strategic partner, (APEG),” Mr Veltri added.

If/when completed, the transaction will have an effective date of the 1^st July 2018.

Source: Rigzone