U.S. Energy to sell East Texas properties for $6.825M

U.S. Energy (USEG) announced that the company has executed definitive documents for the sale of certain assets located in East Texas. The Transaction is subject to customary closing conditions and the Transaction is expected to close on or before December 31. Highlights: All cash proceeds of $6,825,000. Proceeds are expected to be used to fund the continued development of U.S. Energy’s industrial gas project in Montana. Divested assets averaged approximately 1.1M cubic feet per day of natural gas and 168 barrels of oil per day for the quarter ending September 30. Divested assets averaged approximately $136,000 per month of net cash flow at realized oil and gas commodity pricing of $72.99/bbl and $2.21/mcf, respectively, for the quarter ending September 30. The transaction will have an effective date of November 1, and is expected to close on or before December 31.