Tuesday, November 17, 2009

Bakken Black

U.S. Energy Corp. Announces Initial Production Rate of Approximately 1,544 BOE/D From the Lee 16-21 #1H Bakken Well.

I believe that's three-for-three so far on USEG's Bakken deal.

Incidentally, one thing you notice using ShortScreen is that a number of natural resources companies appear on its screener, including BEXP, USEG's Bakken partner. Indeed, when you consider the generous terms USEG got on this deal, it's not too surprising when you consider both companies' respective Altman Z"-Scores: USEG's score was in the financial strength zone and BEXP's was in the distress zone. Not surprising that USEG would get good terms on its deal given that it was negotiating from a position of financial strength.

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