After Bakken buy, U.S. Energy eyes positive future

By Luke Geiver | August 28, 2018

U.S. Energy Corp. is acquiring a new path forward through its purchase of additional Bakken shale assets. The exploration and production company has been working to shed non-operated oil and gas assets along with other legacy mining operations for the past several quarters. With the $17.8 million acquisition of roughly 70 wells spread across 1,600 acres in two of the main Bakken producing counties, the company believes it is primed for a new future. “These actions have set U.S. Energy on a stable path forward and have equipped the company with the ability to evaluate and acquire assets that will ultimately deliver enhanced shareholder returns,” said David Veltri, CEO.

Angelus Private Equity Group is selling the assets to U.S. Energy. In addition to the purchase, U.S. Energy plans to create a new $8 million revolving credit facility which the company said has already been approved by a traditional reserve-based lender.

The asset package includes roughly 1.1 million barrels of oil equivalent of proved developed reserves (79 percent oil) and an additional 400 Boepd of daily production. “The company expects the transaction will create additional opportunities for development and acreage swaps that would permit the company to continue consolidating its leasehold position in the area,” U.S. Energy said.