U.s. Energy Corp. · NASDAQ:USEG
U.s. Energy — The Oil & Gas Conference 2016
26 slides from U.s. Energy's conference presentation, Sep 20, 2016
Slide 1: U.S. Energy Corp. The Oil & Gas Conference
U.S. ENERGY CORP. The Oil & Gas Conference® August 17, 2016
Slide 2: A Legacy of Success & Longevity
NASDAQ: USEG WWW.USNRG.COM 2 A Legacy of Success & Longevity Celebrating Over 50 Years - Established 1966 - 2016
Slide 3: Safe Harbor Disclosure
NASDAQ: USEG WWW.USNRG.COM 3 Safe Harbor Disclosure Carefully read the following disclaimer: The information discussed in this Presentation includes “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 (the “Securities Act”) and Section 21 E of the Securiti
Slide 4: Independent E&P Company Focused on Exploring for and Producing Domestic Oil and Natural Gas
NASDAQ: USEG WWW.USNRG.COM 4 Independent E&P Company Focused on Exploring for and Producing Domestic Oil and Natural Gas Exchange: NASDAQ (40 years) Ticker Symbol: USEG Price per Share (08/11/2016) $2.09 Market Capitalization (08/11/2016) $9.9MM Avg. Daily Trade Volume (Last 3 Months) ~21.9K 52 Week
Slide 5: Oil & Gas Assets / Company Overview
NASDAQ: USEG WWW.USNRG.COM 5 Oil & Gas Assets • Niobrara • Colorado • Bakken/Three Forks • North Dakota • Eagle Ford/Buda/Austin Chalk • Texas • Conventional • Louisiana • Texas • Founded in 1966 (In business over 50 years) • Listed on the Nasdaq (40 years) • Trading Symbol: USEG • Background in nat
Slide 6: Corporate Overview - Operations
NASDAQ: USEG WWW.USNRG.COM 6 Corporate Overview - Operations • Interest in approximately 6,068 net acres primarily located in South Texas and the Williston Basin in North Dakota • Participate in 159 gross (21 net) producing wells in North Dakota / Texas / Louisiana (August 2016) • 2 nd Quarter 2016
Slide 7: 2016 CAPEX
NASDAQ: USEG WWW.USNRG.COM 7 2016 CAPEX The Company’s capital focus will be on: • Funding our drilling obligation in the Wattenberg Development • Acquiring additional interests in the wells we currently are invested in • Acquisition of producing properties
Slide 8: U.S. Energy Corp. E&P Assets
NASDAQ: USEG WWW.USNRG.COM 8 U.S. ENERGY CORP. E&P Assets
Slide 9: Williston Basin Operations & Drilling Programs
NASDAQ: USEG WWW.USNRG.COM 9 Williston Basin Operations & Drilling Programs Bakken / Three Forks Formations Producing Operations in Williams, McKenzie and Mountrail Counties, North Dakota • Interests in 58 participated drilling units (HBP) (majority 1,280 acre spacing) • 66,00 Gross & 2,514 Net part
Slide 10: Williston Basin Assets
NASDAQ: USEG WWW.USNRG.COM 10 • 102 Gross (10.7 net) participated wells (3/10/2016) • ~342* Overall gross potential locations • ~10* - 15* Overall net potential well participation *Assumes 3 Bakken and 3 Three Forks wells per formation, per 1280 acre unit **Assumes 4 Bakken and 4 Three Forks wells p
Slide 11: Booth-Tortuga Buda
NASDAQ: USEG WWW.USNRG.COM 11 • 12,356 gross participated acres • 4,938 net participated acres • 16 gross producing Buda wells • ~ 90% oil / 10% gas * Subject to geological continuity & additional delineation of acreage and ultimate spacing configuration #3H #5Hz #2H #1H Dimmit Zavala Willerson Leas
Slide 12: Producing Properties in Zavala and Dimmit Counties, Texas
NASDAQ: USEG WWW.USNRG.COM 12 Producing Properties in Zavala and Dimmit Counties, Texas La Salle Frio Dimmit Zavala Texas South Texas South Texas Divesting Fully Drilled Development Potential
Slide 13: Contango Operated South Texas acreage
NASDAQ: USEG WWW.USNRG.COM 13 Contango Operated • 22,321 gross (6,068 net) acres in Zavala and Dimmit County, TX with Contango and U.S. Enercorp • Neighboring operator EXCO has extensively drilled and established production rates of 839 BO/D • Revised well costs ~ $5.5 million • Monitoring regional
Slide 14: Wattenberg - Niobrara & Codell Development
NASDAQ: USEG WWW.USNRG.COM 14 • Project Generates Reserves of 383 MBO & 2.17 BCF or 0.745 MBOE • USEG targets adding 50% of current reserves • Participating at 40% of the offered interest enables USEG to meet the corporate goal of adding a growth project to replace reserves. USEG Wells Wattenberg –
Slide 15: DJ Basin Development Drilling Opportunity
NASDAQ: USEG WWW.USNRG.COM 15 • Drilling and Completion Costs down 55% • $3.0 1.0 mile • $4.0 1.5 mile • $4.5 2.0 mile • More efficient design cuts days • Monobore Design • Infrastructure in place • Operating Costs are established • Different techniques and economic drivers for different operators D
Slide 16: Wattenberg Development
NASDAQ: USEG WWW.USNRG.COM 16 Wattenberg Development • Drilling in and near highly developed areas. • Low risk development • All 21 wells to be completed before the end of 2017
Slide 17: Leveraging Other Operator's Experience
NASDAQ: USEG WWW.USNRG.COM 17 Leveraging Other Operator’s Experience
Slide 18: Forecasted Production Profile BOEPM
NASDAQ: USEG WWW.USNRG.COM 18 Forecasted Production Profile BOEPM
Slide 19: U.S. Energy Corp. Financials
NASDAQ: USEG WWW.USNRG.COM 19 U.S. ENERGY CORP. Financials
Slide 20: Six Months Ending June 30, 2016 Financials
NASDAQ: USEG WWW.USNRG.COM 20 Six Months Ending June 30, 2016 Financials • Revenue( thousands ) Q2 Six Months • OIL $1,677 $2,541 • GAS $ 319 $ 521 • TOTAL $1,966 $3,062 • Operating Exp. • Production $1,434 $2,464 • DD&A $ 864 $1,646 • Impairments $2,611 $9,568 • G&A $ 172 $ 311 (1/5 2015) Professio
Slide 21: USEG Stock Price and Volume
NASDAQ: USEG WWW.USNRG.COM 21 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 Stock Price (YTD) - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Volume USEG Stock Price and Volume
Slide 22: World Rig Count By Region
NASDAQ: USEG WWW.USNRG.COM 22 0 500 1000 1500 2000 2500 Rig Count World Rig Count By Region Africa Asia-Pacific Europe Latin America Middle East Canada US Source: Baker Hughes World Rig Count Indicates Production Decline to Follow
Slide 23: The Slowdown of Drilling will Balance Supply and Demand in Time
NASDAQ: USEG WWW.USNRG.COM 23 -3 -2 -1 0 1 2 3 4 5 6 82 84 86 88 90 92 94 96 98 100 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Million Barrels per Day Million Barrels per Day World Liquid Fuels Production and Consumption Balance Implied stock change and balance (right axis) World produc
Slide 24: Current Status
NASDAQ: USEG WWW.USNRG.COM 24 Current Status • Completed 2015 - 2016 Strategic Goals and Plan: – Reduced operational costs by 2/3rds – Executed sale of the Mt. Emmons Mine – Company Headquarters established in Denver, Colorado – Manageable level of debt and streamlined organizational restructuring c
Slide 25: David Veltri, CEO and President
NASDAQ: USEG WWW.USNRG.COM 25 David Veltri is the CEO and President of U.S. Energy Corp. Mr. Veltri has over 35 years of oil and gas industry experience. Mr. Veltri has managed and engineered all phases of upstream and mid - stream oil and gas operations. Prior to joining U.S. Energy Corp., Mr. Velt
Slide 26: Shareholder Contact
NASDAQ: USEG WWW.USNRG.COM 26 Shareholder Contact: NASDAQCM: USEG Headquarters: U.S. Energy Corp. 4643 S. Ulster St. Suite 970 Denver, CO 80237 P. 1 - 303 - 993 - 3200 Investor Relations: P. 1 - 800 - 776 - 9271 IR@usnrg.com Web site: www.usrng.com