U.S. Energy Completes Sale of East Texas Assets

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U.S. Energy Completes Sale of East Texas Assets

U.S. Energy Corp. closed the sale of assets located in East Texas it disclosed in December 2024, raking in $6,825,000 in an all-cash transaction. The company said in a media release that it will use the proceeds of the divestment to fund the continued development of its industrial gas project in Montana. Divested assets averaged […]

Divested assets averaged approximately 1.0 million cubic feet per day of natural gas and 149 barrels of oil per day for the quarter ending September 30, 2024, the company said.

“We are pleased to announce the successful closing of U.S. Energy’s recent transaction, completing the divestment of a significant portion of our legacy East Texas assets”, Ryan Smith, Chief Executive Officer of U.S. Energy Corp. said. “The proceeds from this sale will be strategically allocated to advancing our industrial gas project in Montana. With this milestone behind us, U.S. Energy is now poised with greater liquidity and a stronger balance sheet, enabling us to focus on our growth into a leading industrial gas company”.

U.S. Energy said its East Texas assets are located in Anderson, Chambers, Henderson, and Liberty Counties, holding a total of 122 wells. The company sold the assets to an undisclosed private buyer.

Earlier in 2024, the company sold its South Texas assets for $6.5 million as well as its Kansas assets for $1.2 million in cash. The company said the combined proceeds have been allocated to support its acquisition and development initiatives as well as to fully repay all outstanding debt.

In its third-quarter financial and operational report, U.S. Energy said it has made significant strides in developing the assets in Montana.

“From September through October, we successfully completed drilling operations on our initial well, uncovering multiple productive helium zones within non-hydrocarbon-based gas streams. Notably, the highest helium concentrations were identified within a nitrogen-based formation, with additional helium reserves discovered in a carbon dioxide (CO2) based formation”, the company said in the report. “These findings strategically position us to capitalize on these assets for future industrial gas development and planned carbon sequestration initiatives, aligning with our broader vision for sustainable growth in the industrial gas sector”, the report said.

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