Amidst a shake up of its management, U.S. Energy Corp. (USEG) said Sept. 23 it will also be relocating its headquarters and cutting staff.

The Riverton, Wyo.-based company will move its corporate headquarters to Denver and reduce its current staff to four employees from 11. Its number of directors has also been reduced to five from seven.

The changes are expected to be implemented prior to the end of the year, the release said.

Additionally, Keith G. Larsen, CEO and chairman of the board, will resign. Larsen's resignation is effective Sept. 25.

David Veltri, president and COO, has been appointed to the additional position of CEO. Veltri will implement and oversee the company's transition to Denver.

Veltri said the company hopes its move to Denver will attract "technical personnel and to increase our networking within our industry, with an emphasis on deal flow and banking opportunities."

Steven Richmond, CFO, and Bryon Mowry, principal accounting officer and corporate secretary, will also resign. These resignations will be effective year-end or earlier depending on transition timelines.

An effort to hire a suitable replacement for Richmond is currently underway. The position is expected to be filled in the near-term in order to begin the transition process for the company's accounting function to the new Denver office, the release said.

"While difficult, we believe that in light of the current commodity price, that these reductions in staff and cost cutting measures are a necessary step in order to continue to assure the viability of the Company during these times," Veltri said in a statement.

The company has a portfolio of oil and gas prospects located in the Bakken Shale in North Dakota and Montana, the Eagle Ford Shale in Texas and on the Gulf Coast. It also owns the Mount Emmoms molybdenum project in Colorado.