An American energy investment company with investments in Oklahoma’s Anadarko Basin pledged $8.5 million to a project to develop oil and gas assets in the Permian Basin owned by Shell Oil Company.
The Carlsbad Current-Argus reports that U.S. Energy Development Corporation announced the transaction on Sept. 16 to acquire interest in the horizontal well development project in Loving County near the New Mexico-Texas state line.
The Columbia Project’s total development cost was estimated at about $24 million and will include three horizontal wells in the Permian.
The development will target the Wolfcamp Shale, part of the U.S. Geological Survey’s 2018 discovery of the largest continuous oil and gas resource in history.
Along with the Bone Spring Formation, the discovery was reported to include 46.3 billion barrels of oil and 281 trilling cubic feet of natural gas along with 20 billion barrels of natural gas liquids.
Drilling and completion operations in the Columbia project were completed and extraction operations were expected to begin by the end of 2020.
U.S. Energy Chief Executive Office Jordan Jayson said the company has already seen success in the Permian Basin and hopes to expand its footprint in one of the U.S.’ most productive oilfields.
Source: Carlsbad Current-Argus