Houston-based independent U.S. Energy Corp. added onto its Williston Basin position through the acquisition of New Horizon Resources LLC in a cash and stock transaction.
The acquisition adds assets in a mature field, primarily in North Dakota’s McKenzie and Divide counties, with existing cash flow, low decline and significant upside potential from existing operations, U.S. Energy said in a March 5 release.
“We are pleased to announce this acquisition, which represents the first step in our previously stated strategy of seeking to acquire assets within and around our existing core areas that represent mature, PDP heavy properties,” Ryan Smith, CEO of U.S. Energy, said in a statement.
New Horizon Resources properties consist of an average 63% working interest in about 1,300 net acres in North Dakota, which are 100% HBP. Production during the second half of 2019 was about 30 net barrels of oil equivalent per day (88% oil).
U.S. Energy paid 59,498 shares of common stock and $150,000 in cash at closing of the transaction. The effective date of the acquisition is March 1.
“As we continue forward in 2020, U.S. Energy will continue to pursue opportunities in our core focus areas that allow for capital-efficient growth and increased shareholder value while maintaining a low-cost corporate structure and clean balance sheet,” Smith said.
U.S. Energy is currently focused in the Williston Basin of North Dakota and South Texas. The company targets low decline assets with existing infrastructure.
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