U.S. Energy Acquires New Horizon Resources
NASDAQ-listed U.S. Energy Corp. has entered into a Membership Interest Purchase Agreement and closed a transaction to acquire Williston Basin oil producer New Horizon Resources LLC, for a total consideration of US$425,000 comprised of US$150,000 in cash and 59,498 shares of U.S. Energy common stock.
New Horizon’s assets consist of approximately 1,300 net acres located primarily in McKenzie and Divide Counties, North Dakota, and produced approximately 30 barrels of oil equivalent (boe) per day (88% oil) during H2-2019. The acquired properties represent assets in a mature field with existing cash flow, low decline and significant upside potential from existing operations. The assets include approximately 102 thousand boe (65% oil) of proved reserves with an estimated PV-10 value (before income taxes) of US$482,000 as of December 31st, 2019.
Denver-based U.S. Energy is currently focused on the acquisition and development of oil and gas producing properties in the the Williston Basin of North Dakota and South Texas.