U.S. Energy to sell South Texas assets for $6.5M in cash

U.S. Energy announced that the company has executed definitive documents for the sale of assets located in South Texas. The transaction is subject to customary conditions to closing and the transaction may not close on a timely basis, or at all. All cash proceeds of approximately $6.5M. Proceeds are expected to be used to fund development of U.S. Energy’s recently announced acquisition targeting helium assets and repay outstanding debt. Divested assets averaged approximately 155 barrels of oil equivalent per day from January-March, or 13% of U.S. Energy’s total production over the same period. The transaction will have an effective date of April 1 and is expected to close by July 31. Due to the effects from Hurricane Beryl on the company’s headquarters and employee base, the previously scheduled investor call to discuss the company’s Transaction, as well is its recent acquisition, has been rescheduled for Wednesday, July 17. U.S. Energy has agreed to sell the entirety of its South Texas Assets located in Karnes County, Texas to two separate private buyers. The South Texas Assets are primarily operated properties that produced approximately 155 barrels of oil equivalent per day to U.S. Energy during the first quarter. The effective date for the transaction will be April 1 and the transaction is expected to close by July 31.