SOURCE: US Energy Holdings, Inc.

August 25, 2006 09:00 ET

US Energy Holdings, Inc.: Stockholders' Q&A

HOUSTON, TX -- (MARKET WIRE) -- August 25, 2006 -- The CEO of US Energy Holdings, Inc. (OTCBB: USEH), Claude Eldridge, has made the decision to have a monthly Q&A for the shareholders of US Energy Holdings, Inc. This list will comprise the top questions the company is most frequently asked on a daily basis and will hopefully answer some questions you personally may not have thought to ask.

For the month of August:

Question 1: At what depth will USEH be drilling?

Answer: 5,000 ft.

Question 2: How much gas do you feel the first well will produce?

Answer: Since this is a proven field, our estimate is a bit easier. This particular field has a history at this depth of producing approx. 50MMBTU, and 50 million CFG within the first 12 months. It also should produce approx. 53,000BBLS of liquids to be gathered and sold.

Question 3: What is the revenue projection on this well?


Year 1: $350,000.00 USD

Year 10: $245,000.00 USD based on an estimated 30% reduction.

Estimated total revenue for first 10 years combined: $3,000,000 USD.

Note: The average lifespan of a well in this region is 20 years.

(based on $7.00 per thousand CFG)

Question 4: What are the estimated profits of the leftover liquids?

Answer: At this time USEH is negotiating a contract.

Question 5: What is the estimated cost of drilling the first well?

Answer: $550,000.00 USD

Question 6: What is the approximate amount of time to complete the project?

Answer: 45-60 days from the start of production.

USEH greatly appreciates the support of our shareholders. If you have any further questions, please feel free to contact us at 281-383-9825.

Forward-Looking Statements

This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of US Energy Holdings, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

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