U.S. Energy Corp. Announces Sale of 75% of Its Undeveloped Zavanna Leasehold Interests in McKenzie County, North Dakota for $...
26 Janeiro 2012 - 11:30AM
U.S. Energy Corp. (Nasdaq:USEG) ("U.S. Energy" or the "Company"),
announced today that it has completed the sale of an undivided 75%
of its undeveloped Zavanna LLC ("Zavanna") leasehold interests in
McKenzie County, North Dakota. The interests were sold to
GeoResources, Inc. (Nasdaq:GEOI) and Yuma Exploration and
Production Company, Inc. ("Yuma") for $16.7 million.
On January 20th and January 24th, the Company sold an undivided
75% of its undeveloped acres in its Yellowstone (1/20/12) and SE HR
(1/24/12) Zavanna leasehold interests for $16.7 million. The
Company retained the remaining 25% interest in the undeveloped
acreage and its original working interest and production in ten
gross (2.3 net) wells drilled and/or in progress to date. Of these
ten wells, five are currently producing and it is anticipated that
the remaining five gross wells will be completed by mid-year
2012.
"With the closing of our second Williston Basin asset sale in
the last six weeks, the Company has realized $30.4 million in sale
proceeds which has significantly enhanced our balance sheet," said
Keith Larsen, CEO of U.S. Energy Corp. "The undeveloped acreage
sale did not impact our current Williston Basin production which
consists of 30 gross (9.7 net) wells, or our $28 million borrowing
base with BNP Paribas. Also, under our full cost pool accounting,
we anticipate that this transaction will reduce our depletion,
depreciation and amortization rate which should result in lower
operating costs in 2012," he added.
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 production rates and capital expenditures,
its drilling of wells with industry partners, its ownership
interests in those wells and their expected costs, the oil and
natural gas targets or goals for the wells, future capital
expenditures and projects, future expenses, production, reserves,
borrowing capacity and sale or joint venture transactions. 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.
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, 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, 2010 and the Form 10-Q
filed November 7, 2011), 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
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