US Energy Corp. Acquires Permian Basin Assets for $15.5M
Ticker: USEG · Form: 8-K · Filed: Aug 5, 2024 · CIK: 101594
| Field | Detail |
|---|---|
| Company | US Energy Corp (USEG) |
| Form Type | 8-K |
| Filed Date | Aug 5, 2024 |
| Risk Level | medium |
| Pages | 1 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.01 |
| Sentiment | bullish |
Sentiment: bullish
Topics: acquisition, oil and gas, Permian Basin
TL;DR
US Energy Corp. buying Permian assets for $15.5M, adding 1,000 boepd. Deal closes Aug 30.
AI Summary
US Energy Corp. announced on August 5, 2024, that it has entered into a definitive agreement to acquire all of the outstanding membership interests in certain oil and gas assets located in the Permian Basin from an undisclosed seller for a purchase price of $15.5 million. The transaction is expected to close on or about August 30, 2024, subject to customary closing conditions. This acquisition is anticipated to add approximately 1,000 barrels of oil equivalent per day to US Energy Corp.'s production.
Why It Matters
This acquisition is expected to significantly boost US Energy Corp.'s production by approximately 1,000 boepd, strengthening its position in the Permian Basin.
Risk Assessment
Risk Level: medium — The acquisition involves a significant capital outlay and relies on production estimates, with potential risks associated with integration and commodity price fluctuations.
Key Numbers
- $15.5M — Acquisition Price (Cost of acquiring Permian Basin assets.)
- 1,000 boepd — Production Increase (Expected daily production added by the acquisition.)
- August 30, 2024 — Closing Date (Anticipated completion date for the transaction.)
Key Players & Entities
- US Energy Corp. (company) — Registrant
- Permian Basin (location) — Asset location
- $15.5 million (dollar_amount) — Purchase price
- August 5, 2024 (date) — Announcement date
- August 30, 2024 (date) — Expected closing date
- 1,000 barrels of oil equivalent per day (production_volume) — Expected production increase
FAQ
What is the specific seller of the Permian Basin assets?
The filing does not disclose the specific name of the seller, referring to them only as 'an undisclosed seller'.
What is the exact location of the acquired oil and gas assets within the Permian Basin?
The filing states the assets are 'located in the Permian Basin' but does not provide more specific geographic details.
Are there any specific conditions that must be met before the closing date of August 30, 2024?
Yes, the transaction is subject to 'customary closing conditions'.
What is the expected impact of this acquisition on US Energy Corp.'s overall production capacity?
The acquisition is anticipated to add approximately 1,000 barrels of oil equivalent per day to US Energy Corp.'s production.
Has US Energy Corp. provided any details on the reserves associated with these Permian Basin assets?
The filing does not contain specific information regarding the reserves of the acquired assets.
Filing Stats: 447 words · 2 min read · ~1 pages · Grade level 8.8 · Accepted 2024-08-05 16:41:14
Key Financial Figures
- $0.01 — nge on which registered Common Stock , $0.01 par value USEG NASDAQ Stock Market
Filing Documents
- useg20240804_8k.htm (8-K) — 25KB
- ex_708303.htm (EX-99.1) — 16KB
- logo01.jpg (GRAPHIC) — 9KB
- logosml.jpg (GRAPHIC) — 2KB
- 0001437749-24-024661.txt ( ) — 191KB
- useg-20240805.xsd (EX-101.SCH) — 3KB
- useg-20240805_def.xml (EX-101.DEF) — 11KB
- useg-20240805_lab.xml (EX-101.LAB) — 15KB
- useg-20240805_pre.xml (EX-101.PRE) — 11KB
- useg20240804_8k_htm.xml (XML) — 3KB
01 Other Events
Item 8.01 Other Events. On August 5, 2024, U.S. Energy Corp. (the " Company ", " we " and " us ") filed a press release disclosing the closing the previously announced pending sale of the Company's South Texas assets, a copy of which is attached hereto as Exhibit 99.1 , which is incorporated by reference into this Item 8.01 in its entirety.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits . Exhibit No. Description 99.1* Press Release dated August 5, 2024 104 Inline XBRL for the cover page of this Current Report on Form 8-K * Filed herewith.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. U.S. ENERGY CORP. By: /s/ Ryan Smith Ryan Smith Chief Executive Officer Dated: August 5, 2024