Statoil Picks Up Undeveloped Interest In Bakken Rough Rider

Acquired 75% WI in Rough Rider prospect in McKenzie & Williams Co., ND.

Brigham Oil & Gas LP, Austin, Texas, a subsidiary of Norway national oil company Statoil ASA, has acquired undeveloped interests in McKenzie and Williams counties, North Dakota, from U.S. Energy Corp., Riverton, Wyoming, (Nasdaq: USEG) for $13.7 million.

The assets include an undivided 75% interest in U.S. Energy’s Rough Rider prospect. U.S. Energy retained the remaining 25% of its interest in the undeveloped acreage and its original working interest in its 20 developed wells in the Rough Rider prospect. Of these 20 wells, 18 are currently producing, one is currently being completed and another is expected to be completed in the coming weeks.

Under the terms of the agreement, Brigham has also agreed to begin drilling operations for at least three gross wells in the Rough Rider acreage for each calendar year of 2012 and 2013.

The effective date is Dec. 15, 2011.

In addition, U.S. Energy has entered into an option agreement with an undisclosed party to sell an undivided 75% of its undeveloped acreage within the Yellowstone and SE HR prospects under the Zavanna program in McKenzie County, North Dakota. If the option is exercised, the transaction is expected to close by mid-January 2012.

Under the terms of the agreement, U.S. Energy will retain the remaining 25% of its interest in the undeveloped acreage, and its original working interest and production in 10 gross (2.3 net) wells drilled or in progress. Of these 10 wells, five are currently producing, four wells have been drilled to depth and are awaiting completion and one is currently drilling.

Brigham Exploration Co., the parent of Brigham Oil & Gas, was acquired by Statoil Dec. 8.