US Energy Corp. closed a deal to acquire New Horizon Resources LLC, whose assets include acreage and operated producing properties in North Dakota.
The New Horizon Properties consist of 1,300 net acres primarily in McKenzie and Divide Counties, ND, which are 100% held by production, average a 63% working interest, and produced about 30 net boe/d (88% oil) for the 6-month period ended Dec. 31, 2019.
The consideration paid at closing consisted of 59,498 shares of common stock of the company and $150,000 in cash.
As of Dec. 31, 2019, the New Horizon properties had total proved reserves of 101,968 boe (65% oil), all of which are proved developed producing reserves (PDP).
As part of its fourth quarter and full year 2019 financial and operational report, Ryan Smith, US Energy’s chief executive officer, said the company continued to see increased production results across its legacy asset base in North Dakota and South Texas and would continue to focus on participating in development activity and seek to acquire assets within and around existing core areas.
During the fourth quarter, the company increased production to 36,774 boe (74% oil), an average of about 400 boe/d. This represents an increase of 6% compared to third-quarter 2019. During 2019 the company produced 145,010 boe (76% oil), an 18% increase over 2018.
