On an analyst call, US Energy Corp management talked about its plans for its recently acquired Montana helium asset. The asset is situated on a greater than 100-mile anticline structure known for its porosity and permeability, making it suitable for a helium migration path as well as for CCS opportunities. The Kevin Dome, located ~30 miles from US Energy's current oil field, showed promising helium concentrations in a testing programme in 2023. Over the next year, the company will focus on planning, well economics and offtake agreements, with initial wells planned for Aug-Sep'24. Capex for each well is estimated at US$1.2-1.4mm. Additionally, US Energy aims to explore CCS and CO2 markets for additional revenue, with potential research into CO2 enhanced oil recovery. Most of the previous exploration efforts were focused on oil and gas, with only one well on Synergy acreage that was tested for helium. The company also mentioned that it is working towards releasing reserve estimates shortly.
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See AllUS Energy Corporation executed definitive documents for the sale of its South Texas Assets for ~US$6.5mm, with the transaction expected...
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