Key Developments For U.S. Energy Corp.
U.S. Energy Corp. (USEG.O) (Consolidated Issue listed on NASDAQ Capital Market)
U.S. Energy Corp. Files Form S-3 Shelf Registration Statement
U.S. Energy Corp. announced the filing of a Form S-3 universal shelf registration statement with the Securities and Exchange Commission (SEC). After the shelf registration statement has been declared effective by the SEC, USE may offer and sell, from time to time in the future, up to $100 million of common stock. The common stock may be offered in one or more offerings, and at prices subject to prevailing market conditions to be set forth in a supplemental prospectus filing with the SEC at the time of such offering.
U.S. Energy Corp. Announces Initial Production Rate From the Brad Olson 9-16 #1H Bakken Well
U.S. Energy Corp. announced the initial production rate from its Brad Olson 9-16 #1H Bakken well and provided an overall operations update regarding its various interests in the oil and gas sector. The Brad Olson 9-16 #1H flowed at an initial 24-hour production test rate of approximately 1,805 barrels of oil and 1.84 MMCF of natural gas per day or 2,112 BOE/D. The well was completed with swell packers and 28 fracture stimulation stages. USE's initial working interest in this well is approximately 61% (~48% net revenue interest), and sales from this well are expected to commence immediately.
U.S. Energy Corp. Enters Into Oil And Gas Participation Agreement With Houston Energy L.P.
U.S. Energy Corp. announced that it has entered into a Participation Agreement with Houston, Texas based Houston Energy L.P. (HE) to acquire a 10% working interest in an oil and gas prospect located in Southeast Texas. HE will be the operator of the contract area and is a privately held, independent oil and gas company exploring the Offshore Gulf of Mexico, South Louisiana, Texas Gulf Coast, West Texas, and Southeastern New Mexico. Under the terms of the agreement, U.S. Energy will pay sunk land costs and a prospect fee of approximately $29,000 and will be responsible for 10% of the costs to drill an initial test well (ITW) to earn an 8.5% after casing point (ACP) working interest (6.2% net revenue interest). There is a 10% after prospect payout (APO) back-in working interest due the operator, which would reduce U.S. Energy's APO working interest to 7.65% (5.6% net revenue interest). The initial commitment under the agreement is approximately $260,000, including the prospect fee, to the casing point. Spudding of the well is expected to take place in April 2009 with an initial planned drilling depth of approximately 11,000 feet. If the ITW is deemed productive, additional prospects have also been identified, and will be evaluated on a going forward basis.
U.S. Energy Corp. Engages SMH Capital, Inc. To Seek Oil And Gas Acquisitions
U.S. Energy Corp. announced that it has engaged Houston Texas based SMH Capital Inc. to act as a financial advisor in connection with the potential purchase or acquisition of oil and gas assets.
U.S. Energy Corp. and Petroquest Energy, Inc. Announce Initial Production Results From Bluffs Well
U.S. Energy Corp. announced that its partner, Petroquest Energy, Inc., has advised the Company that initial production from the Bluffs well in Louisiana is currently producing approximately 14,000 MCF and 500 barrels of oil per day or an equivalent of 17,000 MCFE/D. Upon reaching contract depth on the Bluffs Prospect in September, PetroQuest encountered approximately 85 feet (true vertical depth) of net pay in the Cris I -- Hollywood I Sand. The Bluffs well went into production on November 3, 2008. The Company has a 15% working interest in this well and an approximate 10.4% net revenue interest.
