U.S. ENERGY CORP. INVESTOR PRESENTATION February 8, 2017
Market Data Independent E&P Company Focused on Exploring for and Producing DomesLc Oil and Natural Gas Exchange: NASDAQ (41 years) Ticker Symbol: USEG Price per Share (01/09/2017) 0.88 Market Capitaliza5on (01/09/2017)…
Company Overview Williston Basin Oil & Gas Assets Bakken/Three Forks North Dakota Corporate HQ Eagle Ford/Buda/Aus5n Chalk Texas Conven5onal South Texas Gulf Coast Louisiana Founded in 1966 (In business over…
Corporate Overview - Opera5ons Interest in approximately 6,068 net acres primarily located in South Texas and the Williston Basin in North Dakota Par5cipate in 155 gross (21 net) producing wells in North Dakota / Texas /…
2016 CAPEX The Companys capital focus will be on: Funding our drilling obliga5on in the Wa]enberg Development (7.15 million) Acquiring addi5onal interests in the wells we currently own interest Acquiring drilling…
E&P Assets U.S. ENERGY CORP. NASDAQ: USEG WWW.USNRG.COM 7
Ac5ve in Four Major Basins NASDAQ: USEG WWW.USNRG.COM 8
Williston Basin North Dakota NASDAQ: USEG WWW.USNRG.COM 9
Eagle Ford South Texas NASDAQ: USEG WWW.USNRG.COM 10
Williston Basin Assets 102 Gross (11 net) par5cipated wells (3/10/2016) 342* Overall gross poten5al loca5ons 10*-15* Overall net Williston poten5al well par5cipa5on *Assumes 3 Bakken and 3 Three Forks wells…
Williston Basin Drilling Loca5ons High EUR DSUs with drilling opportuni5es: Hovde Lloyd NASDAQ: USEG WWW.USNRG.COM 12
Williston Basin Drilling Loca5ons High EUR DSUs with drilling opportuni5es: State Williston NASDAQ: USEG WWW.USNRG.COM 13
Williston Basin Opera5ons & Drilling Programs Bakken / Three Forks Forma5ons Producing OperaLons in Williams, McKenzie and Mountrail CounLes, North Dakota Interests in 58 par5cipated drilling units (HBP) (majority 1,280 acre…
SOUTH TEXAS ASSETS EAGLEFORD TREND OF SOUTH TEXAS MULTIPLE HORIZONS EAGLEFORD AUSTIN CHALK GEORGETOWN Buda has been developed with Contango Eagleford / Chalk bench has been tested with USENERCORP Georgetown is being…
South Texas Producing Proper5es in Zavala and Dimmit Coun5es, Texas South Texas Development Frio Zavala Poten5al Fully Drilled Buda Dimmit La Salle Georgetown Texas Poten*al NASDAQ: USEG WWW.USNRG.COM 16
Eagle Ford Poten5al Contango Operated 22,321 gross (6,068 net) acres in Zavala and Dimmit County, TX with Contango Leona River Acreage Block Neighboring operator EXCO has extensively drilled and established produc5on…
LEOANA RIVER PROSPECT REGIONAL GOR NASDAQ: USEG WWW.USNRG.COM 18
Leona River oset -Winterbotham ZAV A 1H Geological Assessment Eagle Ford Regional Overview Map: Target Zone: Lower Eagle Ford Shale Kinney Bexar Uvalde Medina Wilson Target Line: 6457 KBTVD (+/- 15) 0 VS with 90.0 inclina5on…
LEONA RIVER PROSPECT LAND MAP ZAVALA COUNTY Lease Dated: 4/15/1942 Lease Status: HBP all FRIO COUNTY depths WI: 60% NRI: 75% Gross Acres: 3,000 CRIMSON Title Opinion: 12/2010 KM RANCH 1 NASDAQ: USEG…
Eagle Ford Poten5al LEONA RIVER PROSPECT 3,000 acres in Zavala County, TX Revised well costs 5.0 million Monitoring regional drilling and comple5on techniques 17 Prospect Wells to be drilled Generate 2500 BOEPD…
Winterbotham ZAV A 1H Geological Assessment Seismic Section and Seismic Structure Map B B B A TP EAGLE FORD TP BUDA, B ZVS BH A L NASDAQ: USEG WWW.USNRG.COM 22
Winterbotham ZAV A 1H Geological Assessment One Mile Radius Map NASDAQ: USEG WWW.USNRG.COM 223 3
Winterbotham ZAV A 1H Geological Assessment Map Development Plan Planned Lateral On Drill Schedule Drilled CHK New Permit CHK WOC CHK EGFD Producer BHL Industry New Permit Industry WOC Industry EGFD…
Winterbotham ZAV A 1H Geological Assessment Offset Petrophysical Log Target Zone (red) Drilled Horizontal zone (green) NASDAQ: USEG WWW.USNRG.COM 225 5
Eagle Ford Poten5al LEONA RIVER PROSPECT Oset Lease Program Results Average Results 47 Total Wells 493 MBO/Well 144 MMcf/Well NASDAQ: USEG WWW.USNRG.COM 27
Eagle Ford Poten5al LEONA RIVER PROSPECT Oset Lease Program Results Average Results 28 Total Wells 295 MBO/Well 166 MMcf/Well NASDAQ: USEG WWW.USNRG.COM 28
Eagle Ford Poten5al LEONA RIVER PROSPECT 3,000 acres in Zavala County, TX Neighboring operator EXCO has extensively drilled and established produc5on rates of 839 BO/D Revised well costs 5.0 million Monitoring…
Booth-Tortuga Buda with Georgetown Farm Out Opportunity 12,356 gross par5cipated acres Zavala 4,000 net par5cipated acres 16 gross producing Contango Operated Buda wells 3H 5Hz 2H 1H 90% oil / 10% gas Dimmit…
Summary Area Economics and Total PUD Value 1. Eagleford - South Texas 2. Bakken North Dakota 3. Summary USEG can deploy 40 million into drilling programs with 30+ ROR results NASDAQ: USEG WWW.USNRG.COM 31
US Energy Economic Summary South Texas NASDAQ: USEG WWW.USNRG.COM 32
INDUSTRY DRIVERS U.S. ENERGY CORP. NASDAQ: USEG WWW.USNRG.COM 33
The Slowdown of Drilling will Balance Supply and Demand in Time Source: EIA Short Term Energy Outlook August 2016 NASDAQ: USEG WWW.USNRG.COM 34
The Slowdown of Drilling will Balance Supply and Demand in Time Source: EIA Short Term Energy Outlook August 2016 NASDAQ: USEG WWW.USNRG.COM 35
Current Status Completed 2015 - 2016 Strategic Goals and Plan: Reduced opera5onal costs by 2/3rds Executed sale of the Mt. Emmons Mine Company Headquarters established in Denver, Colorado Manageable level of debt and…
OPPORTUNITIES INVESTMENT OPPORTUNITY USEG IS PUBLICLY TRADED ON NASDAQ AN INVESTMENT INTO USEG WILL HAVE A VISIBLE AND TRACKABLE PERFORMANCE REACTION THE TWO PROJECTS REVIEWED REPRESENT THE START OF THE ACQUISTION AND…
PROJECTS FOR GROWTH CAPITAL NEEDS 8.2 MILLION FOR BAKKEN DEVELOPMENT 33.2 MILLION OVER TWO YEARS FOR SOUTH TEXAS NASDAQ: USEG WWW.USNRG.COM 38
Management Track Record of Success David Veltri is the CEO and President of U.S. Energy Corp. Mr. Veltri has over 35 years of oil and gas industry experience. Mr. Veltri has managed and engineered all phases of upstream and…
Shareholder Contact: Investor RelaLons: NASDAQCM: USEG P. 1-800-776-9271 Headquarters: IRusnrg.com U.S. Energy Corp. 4643 S. Ulster St. Web site: www.usrng.com Suite 970 Denver, CO 80237 P. 1-303-993-3200 NASDAQ:…