The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jesse Sobelson - D. Boral Capital - Analyst
: It's great to see some pretty rapid progress on the industrial gas segments of the business here. I was just wondering, beyond the initial development
activities that you've planned for the first half of '25, do you know what the expected timeline is for reaching commercial production from the
industrial gas assets?
Question: Jesse Sobelson - D. Boral Capital - Analyst
: Okay, great. Yes, I mean, understood, weather and then just developing the business. It does take a bit of time.
In terms of -- I'll follow up here just really quickly. It sounds like the sources of where you're going to be drilling and the concentration of gasses is
going to determine the size of the processing plant that you guys are going to develop. But in terms of business connections, have you secured
any optic agreements similar to others we've seen in the industry yet? Or are you currently in negotiations? And how would current pricing volatility
impact potential negotiations for this piece of the business to develop further?
Question: Jesse Sobelson - D. Boral Capital - Analyst
: Sure, yes. The industry certainly, over the longer term, definitely still looking at some supply constraints. So we'll be very interesting to see how
things develop.
Question: Charles Meade - Johnson Rice & Company - Analyst
: You actually answered part of my question already in that you said you're looking at a gross -- I think I interpreted it as [16 million] to [20 million]
a day that's kind of gross (inaudible) for the plant. But can you talk about what data points you're going to get, either from these two new completions
and the two new drills that's going to inform you towards -- either to towards the 16 or the 20? And what are the data points you're looking for
from those wells to help you speck out the plan?
Question: Charles Meade - Johnson Rice & Company - Analyst
: Got it. And then this is maybe a derivative question on that. What are the overall design criteria for these next two wells? And I'm really -- I'm
wondering, are you designing them to be producers in established zones like they're both targeting the Duperow? Or are there other kind of design
criteria in this that perhaps evaluating the helium concentration in some of those other zones that you've highlighted? Or just what is your hope
for these wells to be?
Question: Charles Meade - Johnson Rice & Company - Analyst
: Well, Ryan, I want to say thank you. I think you've done yourself a big service by laying out what this '25 plan looks like and starting to come into
focus. And it looks like the mid part or the back half of this year is going to be a really interesting time for you, so congratulations.
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: Just following up on that last question. I didn't hear mention of the cost. Are we still looking at sort of reduction and drilling each well cost in June
for those two new ones compared to what they were at the first two?
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: But the process you were saying it's just the same as helium, it's just the volumes involved?
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MARCH 13, 2025 / 1:00PM, USEG.OQ - Q4 2024 US Energy Corp Earnings Call
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: Got it. And the MRV report, is that just the federal permit type of report? Or what does that involve or let you do?
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: Got it. Got it. Two more quick ones, just a clarification from a comment you made a few minutes ago about 12 to 13 months to realize industrial
gas sales ,were you talking just CO2 or helium also? Or what was the 12 to 13 months?
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: Okay, but that was a -- that's sort of a material change of expectations, correct? Because we had expected stuff in the fourth quarter. I mean, it's
even -- go ahead.
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: Well, Montana is always going to have a harsh winter.
Question: Tom Kerr - Zacks Small-Cap Research - Analyst
: Yes. Last quick financial question, can you comment on the current cash position? Was there any big uses of cash in the first quarter? So we're still
looking at, I don't know, $17 million, $18 million in cash as of today or the end of the first quarter?
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