SOURCE: U.S. Energy Corp.

July 15, 2008 12:26 ET

U.S. Energy Corp. Announces the Spudding of Its First Well With PetroQuest Energy, L.L.C.

Initial Well Represents an 8 BCFE Target

RIVERTON, WY--(Marketwire - July 15, 2008) - U.S. Energy Corp. (NASDAQ: USEG) ("USE" or the "Company"), a natural resources exploration and development company with interests in molybdenum, uranium, oil and gas, gold, and real estate, today announced that PetroQuest Energy L.L.C. ("PetroQuest") (NYSE: PQ) has spudded the Bluffs Prospect in Louisiana.

U.S. Energy Corp. is participating in this well as a 20% working interest partner with PetroQuest. This initial well will be drilled to a depth of about 13,500 feet, and PetroQuest believes it is targeting a resource of 8 BCFE. This well is the first of a three well program anticipated to be drilled this year with PetroQuest. The other two wells, the St. Andrews and Highlands prospects, are expected to spud by late 3rd quarter or early in the 4th quarter depending on drill rig availability.

"We are very excited to be drilling our first well with PetroQuest. Drilling is anticipated to take 30-45 days and if the well is successful, production should commence approximately 90 days after completion," stated Keith Larsen, CEO of U.S. Energy Corp.

About U.S. Energy Corp.

U.S. Energy Corp. is a diversified natural resource company with interests in molybdenum, oil and gas, gold, and real estate. The Company is headquartered in Riverton, Wyoming, and its common stock is listed on The NASDAQ Capital Market under the symbol "USEG."

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. An example is Sutter Gold Mining Inc. 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.

Contact Information

  • For further information, please contact:
    Keith G. Larsen
    Mark J. Larsen
    U.S. Energy Corp.
    (307) 856-9271

    877 North 8th West
    Riverton, WY 82501 USA
    Ph: (307)856-9271
    Fx: (307)857-3050