Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

U.S. Energy Corp. Announces $32.5 Million 2013 Capital Expenditure Budget



U.S. Energy Corp. Announces $32.5 Million 2013 Capital Expenditure Budget

               Announces $27.1 Million Oil and Gas CAPEX Budget

 Announces $5.4 Million CAPEX Budget for the Mount Emmons Molybdenum Project

                   Provides 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.

As announced in November, the Company filed a Mine Plan of Operations ("Plan")
with the U.S. Forest Service ("USFS") on October 10, 2012 in Delta, Colorado.
The Plan is currently under review by the USFS as to its completeness. Upon
acceptance by the USFS, the document with be released to the general public in
its entirety.

U.S. Energy Corp. plans to fund its budget from cash on hand, cash flow from
operations, borrowings under its secured revolving credit facility, the
potential sale of its apartment complex in Gillette, Wyoming, and the
potential sale of the Company's corporate aircraft and related facilities.

Operations Update:

Williston Basin, North Dakota

Recently completed wells:

  * The Ash Federal 5300 11-18T well operated by Oasis was completed and
    turned over to production in early November. The well had an early 24-hour
    flow back rate of 2,905 BOE/D which consisted of approximately 2,683
    barrels of oil and 1,334 MCF of natural gas. The Company has an
    approximate 4.69% WI and 3.52% NRI in this well.
  * The Barker 24-13 #1H well was completed mid December and had an early
    24-hour flow back rate of 1,856 BOE/D on a restricted choke during
    drillout of the plugs, which consisted of approximately 1,769 barrels of
    oil and 524 MCF of natural gas. The Company has an approximate 4.74% WI
    and 3.65% NRI in this well.

Wells in progress:

                                            Working  Net
Well Name           Operator    Formation   Interest Revenue  Status
                                                     Interest
Bunning 35-26 #1H   Zavanna LLC Bakken      7.77%    5.98%    Completing
                                                              Drilled -
Browning 28-33 1H   Zavanna LLC Bakken      4.79%    3.73%    completion
                                                              pending
                    Emerald Oil                               Drilled -
Mongoose 1-8-5H     Inc.        Bakken      0.29%    0.23%    completion
                                                              pending
                    Brigham Oil                               Drilled -
State 36-1 #4TFH    & Gas, L.P. Three Forks 3.64%    2.88%    completion
                                                              pending
Hovde 33-4 2TFH     Brigham Oil Three Forks 2.47%    1.95%    Drilling
                    & Gas, L.P.
Martinez 36-25 1TFH Zavanna LLC Three Forks 8.48%    6.61%    Drilling
                    EOG
Van Hook 19-2523H   Resources   Bakken      0.36%    0.27%    Drilling
                    Inc.
Dobias              Liberty                                   To spud January
152-103-32-29-1H    Resources   Bakken      1.91%    1.49%    2013
                    LLC
Pirate 1-2-1 1H     Emerald Oil Bakken      3.67%    2.75%    To spud January
                    Inc.                                      2013
Rogers 1-12 #1TFH   Zavanna LLC Three Forks 9.36%    7.30%    To spud January
                                                              2013
                    EOG                                       To spud January
Van Hook 126-2523H  Resources   Bakken      0.36%    0.27%    2013
                    Inc.

"We are pleased to announce our 2013 CAPEX budget with a continued primary
focus on North Dakota, which is one of the most active development regions in
the U.S. Although our anticipated budget is very conservative, we have ample
liquidity to increase the CAPEX budget should accelerated drilling activity
take place amongst our operating partners," stated Keith G. Larsen, CEO of
U.S. Energy Corp. "We are realizing stabilized production from the majority of
our wells in North Dakota and remain confident in the returns from this
prolific play. We anticipate participating in four Three Forks formation wells
in Q1 2013 and look forward to evaluating the results which could lead to an
expansion of our reserves and drilling programs in the region," he added. "We
will also continue to monitor regional activity surrounding our participated
Eagle Ford acreage in South Texas as well as our Daniels County, Montana
acreage with the intent to initiate further development during 2013," he
continued.

Mr. Larsen continued, "Regarding our Mount Emmons project, the Company plans
to devote considerable resources to the advancement of the property in 2013.
We made considerable strides in advancing the project in 2012 with the filing
of our Mine Plan of Operations in October 2012, and we look forward to
entering the NEPA process in 2013."

                Disclosure Regarding Forward-Looking Statement

This news release includes statements which may constitute "forward-looking"
statements, usually containing the words "will," "anticipates," "believe,"
"estimate," "project," "expect," "target," "goal," or similar expressions.
Forward looking statements in this release relate to, among other things, U.S.
Energy's expected future capital expenditures and projects, plans for future
acquisitions, the drilling and fracing of wells with industry partners and
potential additional drilling opportunities, our expectations regarding future
production and reserve expansion, activities relating to the Mount Emmons
project and our plans to fund our 2013 capital expenditure budget. There is no
assurance that any of the wells referenced in this press release will be
economic. Initial and current production results from a well are not
necessarily indicative of its longer-term performance. Future transactions may
not close on the terms we anticipate or at all. Results from exploration and
development activities conducted on properties near properties in which the
Company has an interest, may not be indicative of the results the Company will
generate from its properties or the value of those properties. The
forward-looking statements are made pursuant to the safe harbor provision of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. Factors that
would cause or contribute to such differences include, but are not limited to,
dry holes and other unsuccessful development activities, changes in
development plans by third party operators, higher than expected expenses or
decline rates from production wells, future trends in commodity and/or mineral
prices, the availability of capital, competitive factors, and other risks
described in the Company's filings with the SEC (including, without
limitation, the Form 10-K for the year ended December 31, 2011, and the Form
10-Q for the quarter ended September 30, 2012), all of which descriptions are
incorporated herein by reference. By making these forward-looking statements,
the Company undertakes no obligation to update these statements for revision
or changes after the date of this release.

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 oil and natural
gas. The Company also owns the Mount Emmons molybdenum deposit located in west
central Colorado. The Company is headquartered in Riverton, Wyoming and trades
on the NASDAQ Capital Market under the symbol "USEG".

The U.S. Energy Corp. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5043

CONTACT: Reggie Larsen
         Director of Investor Relations
         U.S. Energy Corp.
         1-800-776-9271
         Reggie@usnrg.com

company logo
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement