U.S. Energy Corp. has recently announced its year-end 2021 Securities and Exchange Commission or SEC, total estimated proven reserves. Accordingly, they were of approximately 1.3 million barrels of oil equivalent or MMboe and $20.6 million of PV-10.
Additionally, U.S. Energy Corp. recently announced acquisitions closed on January 5, 2022. Incorporating these and utilizing NYMEX strip pricing, the total proved reserves as of year-end were 6.0 MMboe and $109.8 million of PV-10.
Moreover, U.S. Energy Corp. estimated proved reserves at year-end 2021; prepared in accordance with SEC guidelines by an independent petroleum engineering firm, were approximately 1,334,626 barrels of oil equivalent.
“2021 was a transformational year for U.S. Energy and has positioned the Company to continue executing its strategy of opportunistic growth and financial discipline,” said Ryan Smith, Chief Executive Officer of U.S. Energy Corp., who continued, “With the closing of our Acquisitions at the beginning of the year, we have expanded our operations into geographically diverse assets that generate significant cash flow, allowing us to remain focused on our consolidation initiatives. As we move into 2022, we continue forward on building a diversified business of scale that produces substantial free cash flow and drives capital returns for U.S. Energy shareholders.”
Transformative Acquisitions
Last January, U.S. Energy Corp. announced the closing transactions to purchase certain oil and gas assets. The “Acquired Assets” were from Lubbock Energy Partners LLC, Synergy Offshore LLC, and certain entities controlled by Sage Road Capital LLC.
Moreover, the Acquired Assets represent an operated portfolio of low decline, oil-weighted assets across the Rockies, West Texas, Eagle Ford, and Mid-Continent. Furthermore, U.S. Energy Corp. issued an aggregate of 19,905,736 shares of common stock, representing 81.0% of the company’s post-transaction outstanding common stock.
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PV-10
PV-10 is a computation of the standardized measure on a pre-tax basis. Similarly, it is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable financial measure under GAAP. PV-10 is equal to the standardized measure at the applicable date, before deducting future income taxes discounted at 10%.
About U.S. Energy Corp.
U.S. Energy Corp. is an independent energy company focused on acquiring and developing oil and gas properties; primarily in North Dakota and South Texas. In addition, U.S. Energy Corp. are engaged in operating a portfolio of mature, low decline assets; in order to allow the company to execute on a peer-leading capital returns program to shareholders.
