U.S. Energy Corp. Provides Preliminary Fourth Quarter and Full Year 2019 Production Results and 2019 Year End Proved Reserves...
February 20 2020 - 5:17PM
U.S. Energy Corp. (NASDAQCM: USEG) (“U.S. Energy”
or the “Company”) today announced preliminary 2019 full year and
fourth quarter operating results and its 2019 year end proved
reserves.
“Throughout the fourth quarter and entire 2019,
we have continued to see increased production results across our
legacy asset base in North Dakota and South Texas,” said Ryan
Smith, U.S. Energy’s Chief Executive Officer. “As we enter 2020,
U.S. Energy will not only continue to focus on participating in
development activity across our legacy asset base, but will also
seek to acquire assets within and around our existing core areas.
We will target mature, PDP heavy assets that add immediate reserves
and cash flow with acreage positions that are already held by
production to provide for future opportunities. We believe the
current A&D market environment offers substantial opportunities
and that U.S. Energy is in a unique position to execute on this
strategy with its debt free balance sheet, low overhead and strong
legacy asset base.”
2019 Fourth Quarter and Full Year
Production Update
During the fourth quarter of 2019, U.S. Energy
increased production to 36,774 BOE (74% oil), an average of
approximately 400 BOE per day. This represents an increase of 6%
compared to the third quarter of 2019. During 2019 the Company
produced 145,010 BOE (76% oil), an 18% increase over 2018.
|
|
4th Quarter 2019 |
|
Full Year 2019 |
Sales Volume
(Total) |
|
|
|
|
Oil (Bbls) |
|
27,084 |
|
110,090 |
Gas (Mcf) |
|
58,137 |
|
209,518 |
Sales volumes (Boe) |
|
36,774 |
|
145,010 |
|
|
|
|
|
Average daily production
(Boe) |
|
400 |
|
397 |
|
|
|
|
|
Average Sales
Prices |
|
|
|
|
Oil (Bbl) |
$ |
51.79 |
$ |
55.85 |
Gas (Mcf) |
$ |
1.80 |
$ |
2.03 |
Average price (Boe) |
$ |
41.00 |
$ |
45.33 |
2019 Year End Proved Reserves
Update
As of December 31, 2019, U.S. Energy has total
proved reserves of approximately 995,720 Boe, all of which are
proved developed producing reserves (“PDP”). This represents an
approximate 14% increase over prior year reserve quantities. The
proved reserves had a present value of estimated future net
revenues before income taxes discounted at 10% (“PV10”) value of
$12.1 million.
|
|
|
As of 12/31/2019 |
|
As of 12/31/2018 |
Proved Developed Oil Reserves
(Bbls) |
|
|
|
807,510 |
|
|
751,260 |
Proved Undeveloped Oil Reserves
(Bbls) |
|
|
|
- |
|
|
- |
Total Proved Oil Reserves
(Bbls) |
|
|
|
807,510 |
|
|
751,260 |
|
|
|
|
|
|
Proved Developed Gas Reserves
(Mcf) |
|
|
|
1,129,260 |
|
|
737,998 |
Proved Undeveloped Gas Reserves
(Mcf) |
|
|
|
- |
|
|
- |
Total Proved Gas Reserves
(Mcf) |
|
|
|
1,129,260 |
|
|
737,998 |
|
|
|
|
|
|
Total Proved Reserves (Boe) |
|
|
|
995,720 |
|
|
874,260 |
|
|
|
|
|
|
PV10* |
|
|
$12,072 |
|
$13,024 |
*2019 SEC Pricing: Oil $55.69 per bbl and gas
$2.58 per mcf*2018 SEC Pricing: Oil $65.56 per bbl and gas $3.10
per mcf
Liquidity Update
As of December 31, 2019, the Company has $1.5
million of cash on hand and no outstanding debt. U.S. Energy
currently has 1,345,319 shares outstanding.
About U.S. Energy Corp.
We are an independent energy company focused on
the lease acquisition and development of oil and gas producing
properties in the continental United States. Our business is
currently focused in the Williston Basin of North Dakota and South
Texas. We target low decline assets with existing infrastructure
that allows us to maximize our return on capital in a cost
effective and sustainable manner. More information about U.S.
Energy Corp. can be found at www.usnrg.com.
Forward-Looking Statements
This press release may include “forward-looking
statements” within the meaning of the securities laws. All
statements other than statements of historical facts included
herein may constitute forward-looking statements. Forward-looking
statements in this document may include statements regarding the
Company’s expectations regarding the Company’s operational,
exploration and development plans; expectations regarding the
nature and amount of the Company’s reserves; and expectations
regarding production, revenues, cash flows and recoveries. When
used in this press release, the words "will," "potential,"
"believe," "estimate," "intend," "expect," "may," "should,"
"anticipate," "could," "plan," "predict," "project," "profile,"
"model," or their negatives, other similar expressions or the
statements that include those words, are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause
actual results to differ materially from those implied or expressed
by the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to,
fluctuations in oil and natural gas prices, uncertainties inherent
in estimating quantities of oil and natural gas reserves and
projecting future rates of production and timing of development
activities, competition, operating risks, acquisition risks,
liquidity and capital requirements, the effects of governmental
regulation, adverse changes in the market for the Company’s oil and
natural gas production, dependence upon third-party vendors, and
other risks detailed in the Company’s periodic report filings with
the Securities and Exchange Commission.
Corporate Contact:
U.S. Energy Corp.
Ryan Smith
Chief Executive Officer
(303) 993-3200
www.usnrg.com
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