U.S. Energy Corp. reported the successful completion of the Koufax 3-10 #1H well with Zavanna, LLC and provides an operational update.

The Koufax 3-10 #1H well was completed with 35 fracture stimulation stages and had an early 24-hour flow back rate of 1,660 BOE/D on a restricted choke during drillout of the plugs, which consisted of approximately 1,436 barrels of oil and 1,346 MCF of natural gas. The well is the first well to be completed in the SE HR acreage block. The Company has an approximate 21% WI and 16% NRI in this well. Further, the Olson 8-5 #1H well is currently being fracture stimulated with a planned 35 stages. The Company has an approximate 30% WI / 23% NRI in this well.

Eagle Ford Shale, South Texas: Leona River / Booth-Tortuga Programs: 13,785 gross / 4,136 acres net to USEG

•The Beeler #1H well, the initial test well in the Booth-Tortuga block of the Eagle Ford acreage, is scheduled to spud on November 25, 2011. The Company has an approximate 30% WI / 22.5% NRI in this well. San Joaquin Basin, California: Moose Prospect: 7,177 gross / 2,448 acres net to USEG

•Cirque Resources has notified the Company that all permits have been issued for the initial test well in the San Joaquin Basin. The well is scheduled to spud prior to the end of November. The Company has an approximate 40% WI in this well. U.S. Gulf Coast (Onshore)

•Completion initiatives have commenced on the Bayou Bend well, located in southeastern Texas. The Company has an approximate 13.5% WI and a 9.9% NRI in this well.

"We are pleased to announce the second successful well in the Zavanna drilling program. The well is the first successful well in the SE HR acreage block, which we believe validates the project area," stated Keith Larsen, CEO of U.S. Energy Corp. "Looking forward, we are excited to spud the initial test well in Kern County, California with Cirque and we are also pleased to be spudding our first Dimmit County Eagle Ford well with Crimson before the end of November," he added.

Tags: US Energy