Under the agreement, USE will acquire 30% of Crimson’s working interest in about 7,186 acres.
All of the leases are currently held by production and produce approximately 200 gross BOE/D from the Austin Chalk formation.
It is estimated that under current spacing there is a potential for up to 44 gross (13.5 net) drilling locations on the acreage, and all drilling and leasing on this prospect will be on a heads up basis.
This acquisition brings USE’s total acreage in the Eagle Ford to approximately 11,861 gross acres with the potential for up to 70 gross and 21.3 net Eagle Ford drilling locations.
The prospect also has additional Austin Chalk and Buda formation production potential, and is in the Eagle Ford shale oil window in Zavala and Dimmit Counties, Texas.
Crimson will operate and tentatively plans to spud the first horizontal well in the prospect in October 2011.
