2009-05-18-2009-05-18-2009-05-18

Farm in to earn 11.11% WI in southeastern TX prospect.

U.S. Energy Corp., Riverton, Wyo., (NasdaqCM: USEG) plans to acquire an 11.11% working interest in an oil and gas prospect in southeastern Texas from Houston-based, privately held Houston Energy LP for sunk land costs and a prospect fee of approximately $12,900 plus drilling-cost commitments. U.S. Energy will earn an 8.33% working interest (6.1% net revenue interest) after casing point in the prospect with the initial commitment expected to be approximately $96,000 to the casing point. The well is expected to spud in June with an initial planned drilling depth of approximately 8,000 feet. Houston Energy believes this well has a resource potential of 4 billion cubic feet and 280,000 barrels of oil. Houston Energy focuses on the Gulf of Mexico, South Louisiana, the Texas Gulf Coast, West Texas, and southeastern New Mexico.