U.S. Energy Corp. Announces Acreage Acquisition and CCUS Development Update

HOUSTON, April 16, 2025 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”) today announced the closing of a strategic acquisition (the “Acquisition”) from a privately held company for $0.2 million, strengthening its industrial gas and carbon capture platform in Montana. As part of the Acquisition, U.S. Energy acquired approximately 2,300 net acres with carbon dioxide (CO2) rights that are highly contiguous to its existing position across Montana’s Kevin Dome structure. Additionally, the Acquisition includes an active Class II injection well to sequester CO2 captured from U.S. Energy’s upcoming industrial gas processing facility. The permitted well advances the Company’s carbon capture, utilization, and storage (CCUS) initiatives within its industrial gas development platform.

The Class II injection well is a critical component of U.S. Energy’s plan to securely store CO2 captured from its upcoming industrial gas processing facility. The well maintains active permits approved by the U.S. Environmental Protection Agency (EPA) and issued under the Safe Drinking Water Act’s Underground Injection Control Program (UIC), ensuring compliance with federal and state regulations for safe and permanent CO2 storage.

The Acquisition expands U.S. Energy’s CCUS-ready infrastructure and reflects the Company’s broader strategy to develop scalable, low-emission industrial gas operations while positioning itself as a U.S.-based supplier of clean helium and other critical gases.

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MANAGEMENT COMMENTARY

Ryan Smith, Chief Executive Officer of U.S. Energy, said, "This Acquisition marks a meaningful milestone forward in our efforts to integrate carbon sequestration into our industrial gas platform. The addition of permitted injection infrastructure and strategic acreage strengthens our position across the Kevin Dome and accelerates our ability to deliver clean, domestically sourced helium while sequestering CO2 at scale. We are committed to executing a responsible growth strategy that aligns with global demand for lower-carbon energy solutions."

PROJECT OVERVIEW

The Acquisition enhances U.S. Energy’s control of a highly contiguous acreage block within the Kevin Dome, a geologic structure known for its helium-rich and CO2-dominated gas systems. The Company intends to submit a Monitoring, Reporting, and Verification (MRV) plan to the EPA for the Class II well during the second quarter of 2025. The CCUS-enabled infrastructure will support the Company’s planned industrial gas processing facility and broader environmental goals, positioning U.S. Energy as a leading U.S.-based industrial gas and carbon management platform.

ABOUT U.S. ENERGY CORP.

We are a growth company focused on consolidating high-quality assets in the United States with the potential to optimize production and generate free cash flow through low-risk development while maintaining an attractive shareholder returns program. We are committed to being a leader in reducing our carbon footprint in the areas in which we operate. More information about U.S. Energy Corp. can be found at www.usnrg.com.