Nasdaq: USEG www.usnrg.com Corporate Presentation April 11-13, 2011
Company Overview Oil & Gas Bakken/Three Forks Williston Basin North Dakota Mt. Emmons Montana San Joaquin Molybdenum Project Basin Eagle Ford Apache Prospect Permian Basin Texas Eagle Ford Gulf Coast Conventional Region…
Corporate Overview Two high impact Bakken/Three Forks Formation drilling ventures Brigham Zavanna Eagle Ford Shale (Oil Window) Crimson Five conventional drilling ventures Cirque Resources Houston Energy PetroQuest Southern…
Operational Highlights High impact oil & gas projects Drilling Participation Agreement with Brigham Exploration Currently 14 producing wells (100% success rate) Drilling Participation Agreement with Zavanna for 6,200 net acres in…
Total Proved Reserves Oil Natural Gas Natural Gas Liquids 52,532 3% 24,031 2% 355,963 18% 250,383 23% 811,789 1,546,446 75% 79% 2009 2010 1,086,203 BOE 1,954,941 BOE 80% Increase * Based on independent reserve…
2011 Capital Expenditures / Well Count 2011 Oil & Gas Capex Budget 45.7 million 33.2 million (Williston Basin) 12.5 million (Gulf Coast / California / Colorado) 40 gross / 13 net wells 18 Bakken wells 10 Zavanna + 2 Murex…
E&P Assets
Williston Basin Drilling Programs Bakken / Three Forks Formations Participation Agreement to fund incremental drilling of fifteen 1,280 acre spacing units within Brigham Exploration Companys (BEXP) Rough Rider acreage in Williams and…
Williston Basin / North Dakota Participated Acreage and Brigham Drilling Program Initial Well Results Williams/McKenzie County, North Dakota MacMaster 11-2 1H 14 Strand 16-9 1H 28 Stages 2,264 IP rate 4 Drilled, awaiting…
Operational Results BEXP Program Source: U.S. Energy Corp. 11
U.S. Energy Corp. / Zavanna Drilling Program USEG Acquired Montana Acreage Crescent Farms 7-6 1H (WI 25% NRI 19%) Rough Rider/Yellowstone/SE HR Projects Wang 10-3 1H (WI 18% NRI 13.6%) Skorpil 11-2 1H (WI 21% NRI 16%)…
Williston Basin Reserves & Economics Based on Current Forecasted Type Curves Source: Brigham Exploration Company 13
Eagle Ford Shale (Oil Window) Leona River Eagle Ford Prospect, Zavala County Significant activity in area U.S. Energy Corp. has 30% WI in 4,675 contiguous acres All leases held by production Significant Resource Potential in Eagle…
Current Eagle Ford Activity, Drill & Permits Graham 1 Winterbotham Top TRANSITION EAGLE FORD Petrohawk Mustang Ranch ZAVALA Chesapeake K Graham (Type Log) 1 Traylor FRIO Winterbotham Crimson Exploration Chesapeake Leona River…
California - Moose Prospect Joint Venture with Cirque Resources Miocene Stevens sands - San Joaquin Basin 13,000 / 2.5 million Dry Hole Cost 6,700 gross acres 2,400 net acres (40% working interest) Stratigraphic trap on flank…
Colorado Apache Project USEG Operator Mississippian target Anadarko Basin 6,300 vertical well Colorado 400,000 dry hole cost 350,000 completion cost Apache 3,000 net acres (80% Prospect working interest) Initial well expected…
Gulf Coast Region (onshore) Partner Acreage Working Interest Net Revenue Interest Current Status (Gross) PetroQuest 2,000 (on Varies by prospect from Varies by prospect 2 wells currently producing 450* BOE/D net (NYSE:PQ) 500 square…
Non-E&P Assets
Molybdenum Opportunity 0.450% Substantial historical resources Mt. Emmons High Grade 220 million tons of mineralized material averaging 0.400% .366% molybdenite (MoS2) 0.350% 800 million pounds MoS2 potential High grade sections…
World Class Scale Mount Emmons Molybdenum Project In August 2008 signed Exploration, Development and Mine Operating Agreement with Thompson Creek Metals (TC) whereby TC can earn a 75% ownership interest in the Project for a total of…
Financials
Select Financial Data EBITDA (Year ended December 31, 2010) [ thousands ] 9,690 Strong Balance Sheet (at December 31, 2010) [ thousands ] Cash, Cash Equivalents, Treasury 23,853 Securities & Restricted Investments Total Assets…
Growth 8 Stock Price Oil & Gas Revenue 30 M 7 25 M 20 M 15 M 6 10 M 5 M 5 0 2008 2009 2010 4 3 Operating Revenue 30 M 2 25 M 20 M 1 15 M 10 M 0 5 M Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10…
Additional Liquidity 75 million senior revolving credit facility with BNP Paribas; initial borrowing base of 22.5 million USEG owns a 216 unit apartment complex in Gillette, Wyoming Occupancy currently stable at 95%, generating…
Summary Portfolio of natural resource projects with diverse risk/reward profiles and timelines to maturity High impact drilling projects in Bakken/Three Forks Shale with two proven industry operators/partners Four wells in queue for…
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