Friday, October 3, 2008

USEG Update

U.S. Energy Corp. (Nasdaq: USEG) announced the spudding of the second of the three planned wells with PetroQuest Energy (NYSE: PQ). Excerpt from the press release:

``With drilling completed at the Bluffs prospect, our oil and gas program continues to expand as our partner, PetroQuest, has redeployed the rig to begin drilling at the second of three projects where we have an interest,'' stated Keith Larsen, CEO of U.S. Energy Corp. ``As we advance our oil and gas program through the balance of 2008, we expect to report initial production rates at the Bluffs and additional drilling at our other prospects. With approximately $70 million held in U.S. Treasuries and cash, we are well positioned to take advantage of any additional opportunities identified in the year ahead,'' he added.

According to Yahoo! Finance, USEG currently has a market cap of about $60 million and, after adding in its debt and subtracting its cash, an enterprise value of about $1.5 million.

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