California

U.S. Energy Corp., Riverton, Wyo., plans to pay $2.5 million to Cirque Resources LP, private Denver operator, to earn a 40% working interest in a Miocene Stevens sand prospect in California’s San Joaquin basin.

By OGJ editors
HOUSTON, Nov. 1
– U.S. Energy Corp., Riverton, Wyo., plans to pay $2.5 million to Cirque Resources LP, private Denver operator, to earn a 40% working interest in a Miocene Stevens sand prospect in California’s San Joaquin basin.

U.S. Energy will earn the interest in 6,200 net acres and carry Cirque for a component of its drilling cost in a 13,000-ft commitment well in Kern County. The Cirque-operated well is to spud in the fourth quarter of 2010.

The commitment well targets Stevens sands as thick as 300 ft in a stratigraphic trap on the flank of a large oil-producing field. Based on well results, more seismic analysis may be applied to further delineate the overall prospect and prospective drilling program. Geologic evaluation and current spacing suggest potential for numerous drilling locations, U.S. Energy said.

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