U.S. Energy Corp. is
developing the Kevin Dome in Northwest Montana for industrial CO2, helium, and
natural gas. Flow testing on a production well yielded a gas composition of
approximately 85% CO2, 5% natural gas, and 0.4% helium. According to Ryan Lewis
Smith, President and CEO, the initial phase of the development drilling program
is complete and on target.
"With 3 producing industrial gas wells and 2 injection
wells, we are well positioned for near-term cash flow generation. These results
validate the quality and scale of our resource, further reinforced by our
independent resource report."
“Smith reported that Ryder Scott's assessment confirmed
contingent resources of 444 billion cubic feet of CO2 and 1.3 billion cubic
feet of helium, calling it "among the largest known deposits of its kind."
The Kevin Dome is the site of
the DOE-funded and assisted Big Sky Carbon Sequestration Partnership, which
intends to sequester more CO2 in the dome. The project by U.S. Energy Corp
plans to produce CO2 for enhanced oil recovery (EOR) and the recovery of helium
and natural gas.
Kevin Dome is part of the Sweetgass Arch. Geological structures with four-way closure, i.e., domes, are ideal for accumulating and trapping inert gases such as hydrogen, helium, CO2, and nitrogen.
A 2018 DOE project overview
of the Big Sky Carbon Sequestration project at the Kevin Dome noted:
“Kevin Dome’s geology is ideal because there are porous
rocks located within the middle Duperow that are overlain by two seals made of
tight carbonates and anhydrites. Additional proven seals are at shallower
depths that have historically trapped oil and gas.”
U.S. Energy Corp. plans to
begin construction of a $10 million processing plant in September. Kevin Dome’s
proximity to the Cutbank oil field puts it in a good position to supply CO2 for
EOR. The processing plant will separate the gases into three revenue streams:
CO2, helium, and natural gas.
“{CEO Smith} described recent injection testing at two
disposal wells with sustained rates of over 17 million cubic feet a day,
supporting a sequestration capacity of approximately 240,000 metric tons of CO2
annually. He indicated that EPA monitoring, reporting and verification plan
submission is targeted for September 2025, with approval sought by spring 2026.”
Asked about the low concentration numbers for helium, Smith noted that they were lower than expected but still well within the economic range. The company also expects to produce some nitrogen as another industrial gas from the Kevin Dome. Below is an interesting note showing the different uses for different purity levels of helium.
Regarding
the captured CO2, U.S. Energy Corp. notes that:
“The captured CO₂ stream will serve dual
purposes—supporting carbon management and enabling enhanced oil recovery (EOR)
on our legacy oil and gas assets—creating a vertically integrated platform that
captures value across multiple segments. Our broader infrastructure is being
designed to accommodate third-party volumes, positioning us for potential
tolling agreements and regional expansion.”
References:
U.S.
Energy outlines sub-$10M processing plant spend and targets 2026 ramp in
Montana industrial gas strategy. Earnings Call Insights: U.S. Energy Corp.
(USEG) Q2 2025. Seeking Alpha. August 12, 2025. U.S. Energy outlines sub-$10M
processing plant spend and targets 2026 ramp in Montana industrial gas strategy
Montana
Project: U.S. Energy Corp. Montana
Project – U.S. Energy Corp.
US
Energy Acquires Montana Helium Exploration Acreage. Akap Energy. July 1, 2024. US
Energy Acquires Montana Helium Exploration Acreage
Carbon
Storage Atlas: The Southeast Regional Carbon Sequestration Partnership. SECARB.
U.S. DOE-NETL. Site:
Kevin Dome Project | netl.doe.gov
KEVIN
DOME PROJECT: Duperow Formation, Toole County, Montana. Big Sky Carbon
Sequestration Partnership. November 2018. U.S, DOE-NETL. Kevin-Dome-Project.PDF
U.S.
Energy Corp. Reports Second Quarter 2025 Results and Provides Operational
Update. News Release. U.S. Energy Corporation. August 12, 2025. News
Release
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