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U.S. Energy Corp. Announces Transformative Acquisition Targeting Helium Production
HOUSTON, July 01, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”) today announced that the Company has closed
About this update from U.s. Energy Corp.
[{"type":"text","content":"HOUSTON, July 01, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”) today announced that the Company has closed a transaction (the “Agreement”) with Wavetech Helium Inc (“Wavetech” or “WT”) for the acquisition of operated acreage targeting helium production across the Kevin Dome structure in Toole County, Montana (the “WT Asset”). Additionally, the Company has executed a non-binding letter of intent (the “LOI”) with Synergy Offshore, LLC (“Synergy” or “SOG”) to acquire offsetting operated acreage (the “SOG Asset”), forming a largely contiguous acreage position across the Kevin Dome of approximately 164,000 net acres, as discussed in greater detail below (collectively the “Assets”). HIGHLIGHTS Closed Wavetech Agreement on June 26, 2024. The WT Asset includes: Approximately 140,000 net acres.Multiple prospective helium pay zones consisting primarily of inert nitrogen and carbon dioxide heavy zones. Executed Synergy LOI on June 25, 2024. The SOG Asset includes: Approximately 24,000 net acres, highly contiguous to Wavetech acreage.Multiple prospective helium pay zones, initially targeting carbon dioxide heavy zones. Planned and permitted two upcoming drilling locations on WT Asset. Wells expected to be spud in late July and early August 2024. Industry leading low environmental footprint through the production of non-hydrocarbon helium. Initiation of carbon sequestration business significantly expands opportunity.Company development plans are highly aligned with local, state, and federal legislation. Transactions are structured to minimize existing dilution while maintaining current attractive leverage profile. The Company does not anticipate raising outside capital to execute on this asset move, with cash on hand, cash flow, and anticipated proceeds from non-core asset sales expected to fund considerations and near-term development. Upcoming investor call to further discuss the transactions is scheduled for Wednesday, July 10, 2024 at 10:00 a.m. ET/9:00 a.m. CT, details below. MANAGEMENT COMMENTARY “With U.S. Energy’s acquisition of the Wavetech assets covering a vast resource position across Montana’s Kevin Dome structure, the Company believes that it has positioned itself to exploit what we anticipate will be a transformational resource and economic opportunity in an area with which we...