RIVERTON, Wyo., July 2 /PRNewswire-FirstCall/ -- U.S. Energy Corp. (NASDAQ:USEG) is pleased to announce that it has signed an Exploration and Area of Mutual Interest agreement with a Gulf Coast Oil and Gas Exploration and Production Company.
The agreement encompasses a significant Area of Mutual Interest in which USEG anticipates it will participate as a 20% working interest partner in numerous wells that will be drilled over the next three to five years.
USEG's original commitment is for approximately $3,000,000, which has been tendered.
Two prospects have already been leased and exploration and development activities should commence in the later part of the fourth quarter 2007 or the first quarter of 2008.
USEG believes that numerous prospects will be generated, leased and drilled potentially resulting in $10,000,000 to $15,000,000 in exploration and development expenditures for the Company over the course of the anticipated three to five year program.
In addition to the signing of the Exploration Agreement, USEG has retained Brian Wildes to act as technical advisor to the Company in regards to the project. Mr. Wildes has over 30 years experience in the exploration and development of oil and gas properties in Kansas, Oklahoma, Texas and Louisiana.
"In signing this Exploration Agreement, USEG enters a new era for our shareholders," Keith G. Larsen, Chief Executive Officer of U.S. Energy Corp. commented. "We feel very fortunate to be presented with this opportunity to explore for oil and gas in prolific oil and gas territory. USEG will be searching for significant reserves in every well drilled." Mark J. Larsen, President of U.S. Energy Corp. added, "This presents a fabulous opportunity for USEG for years to come. It is our objective to generate significant cash flows for the Company for several years from this exploration activity in the strongest gas pricing region in the nation." About U. S. Energy Corp.
Disclosure Regarding Mineral Resources
Under SEC and Canadian Regulations;
and Forward-Looking Statements The Company owns or may come to own stock in companies which are traded on foreign exchanges, and may have agreements with some of these companies to acquire and/or develop the Company's mineral properties. Examples of these other companies are Sutter Gold Mining Inc., sxr Uranium One, and Kobex Resources Ltd. These other companies are subject to the reporting requirements of other jurisdictions.
United States residents are cautioned that some of the information available about our mineral properties, which is reported by the other companies in foreign jurisdictions, may be materially different from what the Company is permitted to disclose in the United States.
This news release includes statements which may constitute "forward- looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital, competitive factors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision or changes after the date of this release.
For further information on the differences between the reporting limitations of the United States, compared to reports filed in foreign jurisdictions, and also concerning forward-looking statements, please see the Company's Form 10-K ("Disclosure Regarding Forward-Looking Statements"; "Disclosure Regarding Mineral Resources under SEC and Canadian Regulation"; and "Risk Factors"); and similar disclosures in the Company's Forms 10-Q. DATASOURCE: U.S. Energy Corp.
CONTACT: Keith G. Larsen, CEO, or Mark Larsen, President, +1-307-856-9271, both of U.S. Energy Corp. |