USEG News & Events

U.S. Energy announced that it has reached a Final Investment Decision, or FID, for the construction of its processing facility at the Big Sky Carbon Hub in Montana, and executed an Engineering, Procurement, and Construction,p or EPC agreement with CANUSA EPC under a fixed-scope EPC contract structure. The facility has been designed for approximately 8.0 MMcf/d of inlet capacity, targeting ~12 MMcf of annual helium production and ~125,000 metric tons of refined CO2 per year at initial operations. Company expects to qualify for approximately $85/metric ton in Section 45Q federal tax credits, supporting an estimated $130M in Phase 1 tax credit value. Gathering pipeline installation to commence spring 2026; commissioning targeted for Q3; initial helium sales and carbon management operations are expected in Q1 of 2027. U.S. Energy has entered into an EPC agreement with CANUSA EPC, a leading construction and engineering services provider. Under the terms of the agreement, CANUSA EPC will perform engineering, equipment procurement, fabrication, construction, and commissioning for the facility under a fixed-scope EPC structure. The agreement establishes a project budget with a defined contingency, providing schedule accountability and execution oversight from a proven partner. The execution of the EPC agreement represents one of the final pre-FID milestones required before commencing construction and was completed concurrently with the FID. Initial expenditures are directed toward site preparation, procurement of long-lead equipment, and mobilization of the CANUSA EPC project team. FID achieved, the EPC contract executed, and capital spending underway, the Company is advancing the following near-term priorities: CANUSA EPC mobilizing project team and initiating procurement of long-lead equipment; Installation of approximately 10 miles of in-field gathering pipelines expected to commence spring 2026; Gathering infrastructure and facility commissioning targeted for Q3; Receipt of EPA MRV approvals anticipated during 2026, enabling qualification of Section 45Q tax credits; Execution of a long-term helium offtake agreement with a global industrial gas company - negotiations currently advanced; and Initial helium sales, carbon management operations, and CO2-EOR activity expected to commence Q1 2027.

Reports FY25 revenue $7.353M vs $20.619M last year. "2025 was a transformational year for U.S. Energy, one defined by purposeful execution and a forward-looking vision," said Ryan Smith, Chief Executive Officer of U.S. Energy Corp. "We deliberately optimized and monetized our conventional oil and gas portfolio to fund the development of something far more valuable: a fully integrated industrial gas, energy, and carbon management platform that we believe is fundamentally undervalued by the market today. Every dollar of capital raised and redeployed over the past 18 months has been directed toward this vision. Today, we control 1.3 BCF of certified helium and 444 BCF of CO2 resources, we have filed the first Montana MRV applications with the EPA, we have laid the groundwork for CO2-EOR development at our large, wholly owned Cut Bank oil field, and we are approaching a Final Investment Decision on our processing plant."

US Energy trading resumes

U.S. Energy Corp. announced the pricing of its underwritten offering of 8.8M shares of its common stock at an offering price of $1.00 per share, for total gross proceeds, $8.8M. The offering is expected to close on March 10, subject to customary closing conditions. U.S. Energy plans to use the net proceeds of the offering to fund growth capital for its industrial gas development project, including processing plant and infrastructure, and to support upcoming operations. Roth Capital Partners is acting as sole book-running manager for the offering.