Business
U.S. Energy Corp. Closes Asset Sale for South Texas Properties
HOUSTON, Aug. 05, 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, Aug. 05, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”) today announced that the Company has closed the sale (the “Transaction”) of assets located in South Texas (the “South Texas Assets”). The Transaction was previously announced on July 9, 2024. HIGHLIGHTS All cash proceeds of approximately $6.5 million.Proceeds are expected to be used to fund development of U.S. Energy’s recently announced acquisition targeting helium assets (“Recent Acquisition”) and repay outstanding debt.Divested assets averaged approximately 155 barrels of oil equivalent per day (85% oil) from January-March 2024, or 13% of U.S. Energy’s total production over the same period.The transaction closed on July 31, 2024 with an effective date of April 1, 2024. MANAGEMENT COMMENTARY \"We are pleased to announce the closing of U.S. Energy's recent transactions, marking the complete divestment of the Company’s assets in South Texas,\" stated Ryan Smith, Chief Executive Officer of U.S. Energy Corp. He continued, \"The proceeds from this sale will be directed towards the development of the Company's recent acquisition and debt reduction. With the closing now finalized, U.S. Energy stands in a position of increased liquidity and enhanced balance sheet strength.\" ABOUT U.S. ENERGY CORP. We are a growth company focused on consolidating high-quality assets in the United States with the potential to optimize production and generate free cash flow through low-risk development while maintaining an attractive shareholder returns program. We are committed to being a leader in reducing our carbon footprint in the areas in which we operate. More information about U.S. Energy Corp. can be found at www.usnrg.com. INVESTOR RELATIONS CONTACT Mason [email protected](303) 993-3200www.usnrg.com FORWARD-LOOKING STATEMENTS Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to id...