RIVERTON, Wyo., July 12, 2012 (GLOBE NEWSWIRE) -- U.S. Energy Corp.
(Nasdaq:USEG) ("Company"), announced today that it has entered into a
Letter of Intent ("LOI") with an undisclosed buyer to sell its
Remington Village Apartment Complex located in Gillette, Wyoming.
Under the terms of the LOI, the buyer has offered to pay $16.0 million
for the Apartment Complex. The LOI is non-binding and is subject to due
diligence and the execution of a purchase and sale agreement ("PSA")
which is expected to take place within 15 days. Under the terms of the
LOI, the purchase is not subject to third party financing and closing
is anticipated to take place within 90 days of signing the PSA.
Remington Village is classified in the Company's historical financial
statements as held for sale and its operations have been reflected as
discontinued operations. The current cost basis for Remington Village
is $17.73 million. Accordingly, the Company expects to record a
non-cash impairment of $1.97 million in the second quarter of 2012.
After selling costs, the Company expects to net $15.76 million from
this sale and will retire the $9.8 million note related to this asset
with the proceeds from the sale.
"The divestiture of this non-core asset will allow the Company to
significantly enhance its balance sheet and also allow us to further
direct our focus on managing and growing our oil and gas portfolio,"
said Keith Larsen, CEO of U.S. Energy Corp.
About U.S. Energy Corp.
U.S. Energy Corp. is a natural resource exploration and development
company with a primary focus on the exploration and development of its
oil and gas assets. The Company also owns the "world class" Mount
Emmons molybdenum deposit located in west central Colorado. The Company
is headquartered in Riverton, Wyoming and trades on the NASDAQ Capital
Market under the symbol "USEG".
The U.S. Energy Corp. logo is available at
Disclosure Regarding Forward-Looking Statement
This news release includes statements which may constitute
"forward-looking" statements, usually containing the words "will,"
"anticipates," "believe," "estimate," "project," "expect," "target,"
"goal," or similar expressions. Forward-looking statements in this
release relate to, among other things, USE's entry into a definitive
agreement regarding the proposed sale, expected proceeds from the sale
and the use of the proceeds, the timing of the sale, the related
impairment charge and the effect of the transaction on the Company. The
forward-looking statements are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and uncertainties
that could cause actual results to differ materially from the
forward-looking statements. U.S. Energy may not be able to complete the
proposed transaction on the terms contemplated or at all, and the
anticipated impairment charge could be greater than the company
expects. Other factors could cause or contribute to differences between
the forward-looking statements and actual results include, but are not
limited to, future trends in commodity and/or mineral prices, the
availability of capital, competitive factors, and other risks described
in the Company's filings with the SEC (including, without limitation,
the Form 10-K for the year ended December 31, 2011 and the Form 10-Q
for the quarter ended March 31, 2012), all of which descriptions are
incorporated herein by reference. By making these forward-looking
statements, the Company undertakes no obligation to update these
statements for revision or changes after the date of this release.
CONTACT: Reggie Larsen
Director of Investor Relations
U.S. Energy Corp.