USEG - U.S. Energy rallies on East Texas assets acquisition agreement

U.S. Energy (USEG) +18.4% PM, inked a purchase and sale agreement to acquire operated producing assets located in Liberty County, Texas in an all-stock transaction valued at $250K; properties average a 100% working interest and 86% net revenue interest.Property Highlights: Proved developed reserves estimated at ~242.3K barrels of oil; PV-10 estimated at $1.2M at current strip pricing (Nov.5, 2020); contain 680 net acres which are 100% held by production."The properties are being purchased at highly accretive levels by any transactional metric and at a meaningful discount to their estimated existing reserve value while adding long lived oil reserves and immediate free cash flow to the U.S. Energy portfolio," CEO Ryan Smith commented.Transaction expected to close in Q4.

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U.S. Energy rallies on East Texas assets acquisition agreement