Benzinga | Sep 29, 2020 08:59AM EDT

U.S. Energy Corp. Announces Asset Purchase Agreement And Closing Of Transaction To Acquire Operated And Non-Operated Producing Assets

HOUSTON, Sept. 29, 2020 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQCM: USEG) ("U.S. Energy" or the "Company") today announced that the Company has entered into an Asset PurchaseHOUSTON, Sept. 29, 2020 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQCM USEG) ("U.S. Energy" or the "Company") today announced that the Company has entered into an Asset Purchase Agreement and closed a transaction (the "Transaction") to acquire operated and non-operated producing assets (the "Properties") primarily located in Lea County, New Mexico and Converse County, Wyoming. The acquired Properties consist of select upstream assets of FieldPoint Petroleum Corporation ("FieldPoint") and were acquired pursuant to Fieldpoint's Chapter 7 bankruptcy process.



Acquisition Highlights

* Proved Developed Producing ("PDP") reserves estimated at approximately 237,263 barrels of oil equivalent (Boe) (63% oil).

* PDP PV-10 estimated at $2.5 million.

* Lea County, New Mexico assets comprise approximately 82% of total PDP volumes.

* Converse County, Wyoming assets comprise approximately 15% of total PDP volumes.

* Assets acquired for $500,000 in cash.

"We are pleased to announce this acquisition, which represents U.S. Energy's second acquisition of 2020 and follows our previously stated strategy of seeking to acquire assets that represent mature, PDP heavy properties which we believe have significant upside potential from existing operations," said Ryan Smith, Chief Executive Officer of U.S. Energy, who continued, "The Properties, acquired at an approximate 80% discount to their current PDP PV-10 reserve value, add reserves and immediate free cash flow, with operated acreage positions that are held by production to provide optionality for future opportunities. As we continue to execute our consolidation strategy moving forward in 2020 and into 2021, U.S. Energy will continue to pursue attractive opportunities that allow for capital efficient growth and increased shareholder value, while maintaining a low-cost corporate structure and clean balance sheet."