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RIVERTON, Wyo., Sept. 24, 2012 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq:USEG) (the "Company") today announced the acquisition of a producing Bakken and Three Forks asset package.
Bakken Production and Acreage Acquisition:
On September 21, 2012 the Company entered into a purchase and sale agreement with an undisclosed seller to acquire interests in producing Bakken and Three Forks formation wells and related acreage in McKenzie, Williams and Mountrail Counties, North Dakota.
Under the agreement, USE acquired working interests in 23 drilling units for $2.5 million with an estimated 307,000 BOE in proved reserves. USE's working interest in the drilling units averages 1.45% and ranges from less than 1% to approximately 5%. There are currently 27 gross producing wells in the acreage. Of these wells, 25 are producing from the Bakken formation and 2 are producing from the Three Forks formation. All acreage (~400 net acres) is currently held by production and produces approximately 47 BOE/D net to USE. On a going forward basis, there is the potential for USE to participate in an additional 135 gross wells from the Bakken and Three Forks formations combined and the Company will be heads up for its proportionate interests on all new wells drilled within the units. The effective date of the transaction is July 1, 2012.
"We are pleased to add another active Bakken package to our portfolio of assets. This acquisition increases our proved reserves significantly at accretive value and adds an additional approximate 47 net barrels of stabilized production to our bottom line," said Keith Larsen, CEO of U.S. Energy.
About U.S. Energy Corp.
U.S. Energy Corp. is a natural resource exploration and development company with a primary focus on the exploration and development of its oil and gas assets. The Company is headquartered in Riverton, Wyoming and trades on the NASDAQ Capital Market under the symbol "USEG".