U.S. Energy Corp. announced initial production results from its participation in the horizontal drilling program on its existing acreage position targeting the development of the Georgetown formation in Zavala and Dimmit Counties, Texas. In Zavala County, Texas, the Beeler Ranch #1H, an approximate 26,000 foot total measured depth dual-lateral well targeting the Georgetown formation, averaged 1,046 barrels of oil and 1,085 mcf of natural gas over the well’s initial 24 hours on production. The well had a flowing tubing pressure of 1,118 psi on a 22/64” choke. Cumulative production over the first eight days generated 7,200 Boepd with an 81% oil cut, in line with some of the upper-tier wells recently completed in the Georgetown formation. The well was drilled in November and completed within budget.