NEW YORK, and NORTH YORKSHIRE, England, April 11 /PRNewswire-FirstCall/ -- U.S. Energy Systems, Inc. (NASDAQ:USEY) and its UK Energy Systems, Ltd. (UKES) subsidiary today announced that UKES has successfully completed and tested its Ebberston Moor-1 Appraisal Well, the first of three planned wells in the undeveloped Ebberston Moor gas field. Ebberston Moor is the largest of six fields in UKES's North Yorkshire gas development project. UKES also announced that it has completed its 3D seismic acquisition over the Ebberston Moor field, and expects to have the processed survey data in three to five weeks, at which point it will begin analysis and interpretation of the data.
"We are excited by the test results of our first well in our largest gas field," said Grant Emms, CEO of UKES. "It's an excellent start toward full development of Ebberston Moor. We look forward to completing the 3D seismic data processing and analysis, which we expect to provide very important information with respect to the field's reserves as well as the most advantageous locations for further drilling." UKES completed drilling EB-1 on March 12, after which the well was cased and a completion string was run. Testing operations began on March 31 and were completed on April 7.
The primary reservoir was drilled to a total depth of 7,150 ft measured depth (5,341 ft total vertical depth subsea). Through inferences of the petrophysical interpretation, the logs estimated a gross column of 341 ft.-361 ft. and an estimated net pay column of approximately 116 ft.-123 ft. Moreover, the test required no stimulation of the reservoir formation for gas flow. The well was cleaned up and flow tested over a five day period at a maximum flowing wellhead pressure of 1,440 psi, achieving a stabilized rate of 5 mmscfd. All data acquisition planned for the test was successfully obtained.
In addition to the primary reservoir, a secondary reservoir was identified with a gross column of 177 ft. A 78 ft. section of this interval was tested in an offset appraisal well, and was found to have an average twenty-four hour equivalent flow rate of 1.32 mmscfd.
USEY's UK natural gas exploration and production growth strategy includes the full development of proved and probable gas fields, the construction of a pipeline connection to the natural gas grid, as well as 3D seismic covering UKES's North Yorkshire fields and prospects.
USEY is a "clean and green" energy company that owns and operates renewable energy, clean energy and power generation businesses in the U.S. and UK.
Additional information is available on the Company's website at: http://www.useyinc.com/.
About U.S. Energy Systems, Inc.
U.S. Energy Systems, Inc. is an owner of green power and clean energy and resources. USEY owns and operates energy projects in the United States and United Kingdom that generate electricity, thermal energy and gas production.
Certain matters discussed in this press release are forward-looking statements, and certain important factors may affect the Company's actual results and could cause actual results to differ materially from any forward- looking statements made in this release, or which are otherwise made by or on behalf of the Company. Such factors include, but are not limited to, the effect of the USEB's Chapter 11 filing, access to needed financing or refinancing on acceptable terms, revisions in the initial estimates in the fair market value of the acquired assets, failure to realize the estimated savings or operating results of the acquisition, and other risks associated with acquisitions generally, including risks relating to managing and integrating acquired businesses, changes in market conditions, the impact of competition, changes in local or regional economic conditions, and the amount and rate of growth in expenses, dependence on management and key personnel, changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues, the inability to commence planned projects in a timely manner, our ability to continue our growth strategy, and the ability to complete acquisitions, as well as other risks detailed from time to time in U.S. Energy's Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the year ended December 31, 2005 as well as the 2006 quarterly reports on Form 10-Q. We do not undertake to update any of the information set forth in this press release.
CONTACT: Investors Media
U.S. Energy Systems, Inc. Kekst and Company
Adam D. Greene, 212-588-8901 Adam Weiner / Joel Steinhaus
212-521-4800
DATASOURCE: U.S. Energy Systems, Inc.
CONTACT: Investors, Adam D. Greene of U.S. Energy Systems, Inc., +1-212-588-8901, ; or Media, Adam Weiner or Joel Steinhaus of Kekst and Company, +1-212-521-4800 Web site: http://www.useyinc.com/
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