U.S. Energy Corp. Announces Transaction to Acquire New Horizon Resources, LLC

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[{"type":"text","content":"HOUSTON, March 05, 2020 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQCM: USEG) (“U.S. Energy” or the “Company”) today announced that the Company has entered into a Membership Interest Purchase Agreement and closed a transaction to acquire New Horizon Resources, LLC (“New Horizon”), whose assets include acreage and operated producing properties in North Dakota (the “Properties”). The consideration paid at closing consisted of 59,498 shares of common stock of the Company and $150,000 in cash (the “Acquisition”). The effective date of the Acquisition is March 1, 2020.\n The New Horizon Properties consist of approximately 1,300 net acres located primarily in McKenzie and Divide Counties, North Dakota, which are 100% held by production, average a 63% working interest, and produced approximately 30 net Boepd (88% oil) for the six-month period ended December 31, 2019. The Properties represent assets in a mature field with existing cash flow, low decline and significant upside potential from existing operations. “We are pleased to announce this acquisition, which represents the first step in our previously stated strategy of seeking to acquire assets within and around our existing core areas that represent mature, PDP heavy properties,” said Ryan Smith, Chief Executive Officer of U.S. Energy. “The New Horizon Properties add immediate reserves and cash flow, with operated acreage positions that are held by production to provide for future opportunities. As we continue forward in 2020, U.S. Energy will continue to pursue opportunities in our core focus areas that allow for capital efficient growth and increased shareholder value while maintaining a low-cost corporate structure and clean balance sheet.” Proved Reserves Overview As of December 31, 2019, the New Horizon Properties had total proved reserves of approximately 101,968 Boe (65% oil), all of which are proved developed producing reserves (“PDP”), and had a present value of estimated future net revenues before income taxes discounted at 10% (“PV10”) value of approximately $482,000. U.S. EnergyAs of 12/31/2019 Acquired PropertiesAs of 12/31/2019 U.S. Energy – Pro FormaAs of 12/31/2019Proved Developed Oil Reserves (Bbls)807,510 66,670 874,180Proved Undeveloped Oil Reserves (Bbls)- - -Total Proved Oil Reserves (Bbls)807,510 66,670 874,180 Proved Developed Gas Reserves (Mcf)1,129,260 21...

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