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Announces $5.4 Million CAPEX Budget for the Mount Emmons Molybdenum ProjectProvides Oil and Gas Operational Update
RIVERTON, Wyo., Jan. 7, 2013 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq:USEG) (the "Company"), today reported its 2013 Oil and Gas and Mount Emmons Capital Expenditure budgets and provided an operational update on its oil and gas initiatives.
Oil and Gas:
In December 2012 the Company's Board of Directors approved a $27.1 million oil and gas capital expenditure budget for 2013. The Company has allocated an estimated $7.1 million to be spent in the Williston Basin of North Dakota under its three current drilling programs. This amount is subject to upward adjustment depending on the pace of development with operators other than Brigham and Zavanna. Additionally, the Company has budgeted $20.0 million for the acquisition of producing properties with associated proven reserves in 2013 with a primary focus on the Williston Basin.
At this time, the Company has not budgeted any capital for its South Texas programs pending further analysis of nearby operators' drilling results in the Eagleford, Buda and Pearsall formations. Several operators are drilling in close proximity to our Leona River and Booth-Tortuga prospects, which are operated by Crimson Exploration. Crimson has notified the Company that it wishes to continue monitoring results of the various formations before re-initiating operations in the prospects.
Actual timing of drilling and completing wells, well performance and the anticipated number of gross and net wells could vary in each region. Amounts budgeted for each regional drilling program are also subject to change based on a number of factors including, but not limited to, timing, well costs, drilling and completion success, availability of capital and weather-related issues.
Mount Emmons Molybdenum Project:
The Company has approved a budget of $5.4 million for the advancement of the Mount Emmons Molybdenum project. This includes operation of the water treatment plant, plant upgrades, continued permitting, the acquisition of Thompson Creek's interest in the Highlands Ranch property, legal, and lobbying expenses.