U.S. Energy To Sell East Texas Assets For $6.825 Mln In Cash

(RTTNews) - U.S. Energy Corp. (USEG) announced on Friday that has executed definitive documents for the sale of certain assets located in East Texas for $6.825 million in cash to a private buyer. The proceeds from the transaction, to be closed on or before December 31, are expected to be used to fund the continued development of USEG's industrial gas project in Montana.

In addition, the divestment will streamline the company's operations and deliver meaningful cost savings by exiting a non-core geographic region.

USEG plans to sell the majority of its East Texas assets located in Anderson, Chambers, Henderson, and Liberty Counties, Texas.

The East Texas assets, with a total of 122 wells, are primarily operated properties that produced around 1.1 million cubic feet per day of natural gas and 168 barrels of oil per day for the quarter to September 30.