U.S. Energy Corp. (Nasdaq: USEG) put out a press release on Monday announcing a deal with a private, Texas-based oil company -- U.S. Energy's third working interest partner in the oil & gas space: "U.S. Energy Corp. Signs Lease Purchase and Drilling Agreement With Private Texas-Based Company".
I spoke to U.S. Energy's CEO Keith Larsen today, and asked him if he was seeing better terms offered on these sorts of working interest deals, with the current correction in oil and natural gas prices. He said he was, and that he was also starting to look at buying proven reserves from other companies, particularly those that overextended themselves with leverage and may now be forced to sell some of their assets.
At its closing price today of $2.29 per share, USEG is trading for about $2.5 million less than its net cash.
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