----

| x      | Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934  |
|--------|------------------------------------------------------------------------------------------|
|   | For the quarter ended June 30, 2009 or                                                   |
|   |                                                                                     |
| o      | Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
|   | For the transition period from ___________ to ____________                               |

| U.S. ENERGY CORP.                                   |
|-----------------------------------------------------|
| (Exact Name of Company as Specified in its Charter) |

| Wyoming                                          |   | 83-0205516          |
|--------------------------------------------------|--------|---------------------|
| (State or other jurisdiction of                  |   | (I.R.S. Employer    |
| incorporation or organization)                   |   | Identification No.) |
|                                             |   |                |
| 877 North 8th West, Riverton, WY                 |   | 82501               |
| (Address of principal executive offices)         |   | (Zip Code)          |
|                                             |   |                |
| Company's telephone number, including area code: |   | (307) 856-9271      |

| Not Applicable                                                     |
|--------------------------------------------------------------------|
| Former name, address and fiscal year, if changed since last report |

----

| Class                        |   | Outstanding Shares at August 6, 2009 |
|------------------------------|--------|--------------------------------------|
| Common stock, $.01 par value |   | 21,289,058                      |

----

|     |                                                                                                     | Page No.     |
|----------|----------------------------------------------------------------------------------------------------------|--------------|
| PART I.  | FINANCIAL INFORMATION                                                                                    |         |
|     |                                                                                                     |         |
| ITEM 1.  | Financial Statements                                                                                     |         |
|     |                                                                                                     |         |
|     | Condensed Balance Sheets as of June 30, 2009 (unaudited) and  December  31, 2008     | 4-5          |
|     |                                                                                                     |         |
|     | Condensed Statements of Operations for the Three and Six Months Ended June 30, 2009 and 2008 (unaudited) | 6-7          |
|     |                                                                                                     |         |
|     | Condensed Statements of Cash Flows for the Six Months Ended June 30, 2009 and 2008 (unaudited)           | 8-9          |
|     |                                                                                                     |         |
|     | Notes to Condensed Financial Statements (unaudited)                                                      | 10-18        |
|     |                                                                                                     |         |
| ITEM 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations              | 19-29        |
|     |                                                                                                     |         |
| ITEM 3.  | Quantitative and Qualitative Disclosures about Market Risk                                               | 29           |
|     |                                                                                                     |         |
| ITEM 4.  | Controls and Procedures                                                                                  | 29           |
|     |                                                                                                     |         |
| PART II. | OTHER INFORMATION                                                                                        | 30           |
|     |                                                                                                     |         |
| ITEM 1.  | Legal Proceedings                                                                                        | 30           |
|     |                                                                                                     |         |
| ITEM 1A. | Risk Factors                                                                                             | 30           |
|     |                                                                                                     |         |
| ITEM 2.  | Changes in Securities and Use of Proceeds                                                                | 30           |
|     |                                                                                                     |         |
| ITEM 3.  | Defaults Upon Senior Securities                                                                          | 31           |
|     |                                                                                                     |         |
| ITEM 4.  | Submission of Matters to a Vote of Shareholders                                                          | 31           |
|     |                                                                                                     |         |
| ITEM 5.  | Other Information                                                                                        | 31           |
|     |                                                                                                     |         |
| ITEM 6.  | Exhibits and Reports on Form 8-K                                                                         | 32           |
|     |                                                                                                     |         |
|     | Signatures                                                                                               | 33           |
|     |                                                                                                     |         |
|     | Certifications                                                                                           | See Exhibits |

----

| U.S. ENERGY CORP.                                    |   |
|------------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                             |   |
| ASSETS                                               |   |
| (Amounts in thousands)                               |   |
|                                                 |   |   |   |   |   |   |
|                                                 |   | June 30, |   |   | December 31, |   |
|                                                 |   | 2009 |   |   | 2008 |   |
|                                                 |   | (Unaudited) |   |   |   |   |
| CURRENT ASSETS:                                      |   |   |   |   |   |   |
| Cash and cash equivalents                            |   | $ | 1,979 |   |   | $ | 8,434 |   |
| Marketable securities                                |   |   |   |   |   |   |   |   |
| Held to maturity - treasuries                        |   |   | 40,877 |   |   |   | 51,152 |   |
| Available for sale securities                        |   |   | 799 |   |   |   | 576 |   |
| Accounts receivable                                  |   |   |   |   |   |   |   |   |
| Trade                                                |   |   | 440 |   |   |   | 600 |   |
| Reimbursable project costs                           |   |   | 3 |   |   |   | 442 |   |
| Income taxes                                         |   |   | 5,962 |   |   |   | 5,896 |   |
| Restricted investments                               |   |   | -- |   |   |   | 4,929 |   |
| Other current assets                                 |   |   | 771 |   |   |   | 738 |   |
| Total current assets                                 |   |   | 50,831 |   |   |   | 72,767 |   |
|                                                 |   |   |   |   |   |   |   |   |
| INVESTMENT                                           |   |   | 3,289 |   |   |   | 3,455 |   |
|                                                 |   |   |   |   |   |   |   |   |
| PROPERTIES AND EQUIPMENT:                            |   |   |   |   |   |   |   |   |
| Oil & gas properties under full cost method, net |   |   | 6,807 |   |   |   | 7,906 |   |
| Undeveloped mining claims                            |   |   | 22,964 |   |   |   | 23,950 |   |
| Commercial real estate, net                          |   |   | 23,629 |   |   |   | 23,998 |   |
| Property, plant and equipment, net                   |   |   | 9,517 |   |   |   | 9,639 |   |
| Net properties and equipment                         |   |   | 62,917 |   |   |   | 65,493 |   |
|                                                 |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                         |   |   | 1,061 |   |   |   | 916 |   |
| Total assets                                         |   | $ | 118,098 |   |   | $ | 142,631 |   |
|                                                 |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                              |   |
|------------------------------------------------|--------|
| CONDENSED BALANCE SHEETS                       |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY           |   |
| (Amounts in thousands)                         |   |
|                                           |   |   |   |   |   |   |
|                                           |   | June 30, |   |   | December 31, |   |
|                                           |   | 2009 |   |   | 2008 |   |
|                                           |   | (Unaudited) |   |   |   |   |
| CURRENT LIABILITIES:                           |   |   |   |   |   |   |
| Accounts payable                               |   | $ | 441 |   |   | $ | 898 |   |
| Accrued compensation                           |   |   | 664 |   |   |   | 682 |   |
| Short-term construction debt                   |   |   | -- |   |   |   | 16,813 |   |
| Current portion of long-term debt              |   |   | 200 |   |   |   | 875 |   |
| Other current liabilities                      |   |   | 242 |   |   |   | 715 |   |
| Total current liabilities                      |   |   | 1,547 |   |   |   | 19,983 |   |
|                                           |   |   |   |   |   |   |   |   |
| LONG-TERM DEBT, net of current portion         |   |   | 800 |   |   |   | 1,000 |   |
|                                           |   |   |   |   |   |   |   |   |
| DEFERRED TAX LIABILITY                         |   |   | 8,733 |   |   |   | 8,945 |   |
|                                           |   |   |   |   |   |   |   |   |
| ASSET RETIREMENT OBLIGATIONS                   |   |   | 150 |   |   |   | 144 |   |
|                                           |   |   |   |   |   |   |   |   |
| OTHER ACCRUED LIABILITIES                      |   |   | 707 |   |   |   | 726 |   |
|                                           |   |   |   |   |   |   |   |   |
| SHAREHOLDERS' EQUITY:                          |   |   |   |   |   |   |   |   |
| Common stock, $.01 par value; unlimited shares |   |   |   |   |   |
| authorized; 21,269,058 and 21,935,129          |   |   |   |   |   |   |   |   |
| shares issued, respectively                    |   |   | 213 |   |   |   | 219 |   |
| Additional paid-in capital                     |   |   | 93,374 |   |   |   | 93,951 |   |
| Accumulated surplus                            |   |   | 12,431 |   |   |   | 17,663 |   |
| Unrealized gain on marketable securities       |   |   | 143 |   |   |   | -- |   |
| Total shareholders' equity                     |   |   | 106,161 |   |   |   | 111,833 |   |
| Total liabilities and shareholders' equity     |   | $ | 118,098 |   |   | $ | 142,631 |   |
|                                           |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                                   |   |
|-----------------------------------------------------|--------|
| CONDENSED STATEMENTS OF OPERATIONS                  |   |
| (Unaudited)                                         |   |
| (Amounts in thousands, except per share data)  |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   | For the three months |   |   | For the six months |   |
|                                                |   | ended June 30, |   |   | ended June 30, |   |
|                                                |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| OPERATING REVENUES:                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                         |   | $ | 745 |   |   | $ | 313 |   |   | $ | 1,479 |   |   | $ | 431 |   |
| Oil and gas                                         |   |   | 645 |   |   |   | -- |   |   |   | 1,319 |   |   |   | -- |   |
| Management fees and other                           |   |   | 4 |   |   |   | 16 |   |   |   | 9 |   |   |   | 47 |   |
|                                                |   |   | 1,394 |   |   |   | 329 |   |   |   | 2,807 |   |   |   | 478 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING COSTS AND EXPENSES:                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                         |   |   | 498 |   |   |   | 234 |   |   |   | 1,010 |   |   |   | 401 |   |
| Oil and gas                                         |   |   | 678 |   |   |   | -- |   |   |   | 1,490 |   |   |   | -- |   |
| Impairment of oil and gas properties                |   |   | -- |   |   |   | -- |   |   |   | 1,063 |   |   |   | -- |   |
| Water treatment plant                               |   |   | 576 |   |   |   | 398 |   |   |   | 1,019 |   |   |   | 398 |   |
| Mineral holding costs                               |   |   | -- |   |   |   | 414 |   |   |   | -- |   |   |   | 585 |   |
| General and administrative                          |   |   | 1,832 |   |   |   | 1,782 |   |   |   | 3,837 |   |   |   | 4,362 |   |
|                                                |   |   | 3,584 |   |   |   | 2,828 |   |   |   | 8,419 |   |   |   | 5,746 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING LOSS                                      |   |   | (2,190 | ) |   |   | (2,499 | ) |   |   | (5,612 | ) |   |   | (5,268 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME & (EXPENSES):                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain (loss) on sales of assets                      |   |   | -- |   |   |   | (29 | ) |   |   | 5 |   |   |   | (29 | ) |
| Equity loss                                         |   |   | (75 | ) |   |   | -- |   |   |   | (166 | ) |   |   | -- |   |
| Interest income                                     |   |   | 89 |   |   |   | 297 |   |   |   | 176 |   |   |   | 851 |   |
| Interest expense                                    |   |   | (20 | ) |   |   | (89 | ) |   |   | (58 | ) |   |   | (108 | ) |
|                                                |   |   | (6 | ) |   |   | 179 |   |   |   | (43 | ) |   |   | 714 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS BEFORE PROVISION                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR INCOME TAXES AND                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED OPERATIONS                             |   |   | (2,196 | ) |   |   | (2,320 | ) |   |   | (5,655 | ) |   |   | (4,554 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES:                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current benefit from (provision for)          |   |   | (467 | ) |   |   | 1,494 |   |   |   | 210 |   |   |   | 2,122 |   |
|  Deferred benefit from (provision for)         |   |   | (222 | ) |   |   | (790 | ) |   |   | 213 |   |   |   | (744 | ) |
|                                                |   |   | (689 | ) |   |   | 704 |   |   |   | 423 |   |   |   | 1,378 |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM CONTINUING                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATIONS                                          |   |   | (2,885 | ) |   |   | (1,616 | ) |   |   | (5,232 | ) |   |   | (3,176 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM DISCONTINUED                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATIONS                                          |   |   | -- |   |   |   | (134 | ) |   |   | -- |   |   |   | (290 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                            |   | $ | (2,885 | ) |   | $ | (1,750 | ) |   | $ | (5,232 | ) |   | $ | (3,466 | ) |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                             |   |
|-----------------------------------------------|--------|
| CONDENSED STATEMENTS OF OPERATIONS            |   |
| (Unaudited)                                   |   |
| (Amounts in thousands, except per share data) |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | For the three months |   |   | For the six months |   |
|                                          |   | ended June 30, |   |   | ended June 30, |   |
|                                          |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| PER SHARE DATA                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss                        |   |   |   |   |   |   |   |   |   |   |   |   |
| from continuing operations                    |   | $ | (0.13 | ) |   | $ | (0.07 | ) |   | $ | (0.24 | ) |   | $ | (0.14 | ) |
| Basic and diluted loss                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from discontinued operations                  |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (0.01 | ) |
| Basic and diluted loss per share              |   | $ | (0.13 | ) |   | $ | (0.07 | ) |   | $ | (0.24 | ) |   | $ | (0.15 | ) |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTED                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES OUTSTANDING                            |   |   | 21,311,266 |   |   |   | 23,615,657 |   |   |   | 21,481,944 |   |   |   | 23,682,357 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                                  |   |
|----------------------------------------------------|--------|
| STATEMENTS OF CASH FLOWS                           |   |
| (Unaudited)                                        |   |
| (Amounts in thousands)                             |   |
|                                               |   |   |   |   |   |   |
|                                               |   | For the six months ended June 30, |   |
|                                               |   | 2009 |   |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:              |   |   |   |   |   |   |
| Loss from continuing operations                    |   | $ | (5,232 | ) |   | $ | (3,176 | ) |
| Loss from discontinued operations                  |   |   | -- |   |   |   | (290 | ) |
| Net loss                                           |   |   | (5,232 | ) |   |   | (3,466 | ) |
| Reconcile net loss to net cash used in operations  |   |   |   |   |   |   |   |   |
| Depreciation, depletion & amortization         |   |   | 2,070 |   |   |   | 407 |   |
| Accretion of discount on treasury investment       |   |   | (94 | ) |   |   | -- |   |
| Impairment of oil and gas properties               |   |   | 1,063 |   |   |   | -- |   |
| Equity loss from Standard Steam                    |   |   | 166 |   |   |   | -- |   |
| Income tax receivable                              |   |   | (66 | ) |   |   | (1,341 | ) |
| Deferred income taxes                              |   |   | (213 | ) |   |   | 744 |   |
| Gain on sale of assets                             |   |   | (5 | ) |   |   | 29 |   |
| Noncash compensation                               |   |   | 837 |   |   |   | 1,567 |   |
| Noncash services                                   |   |   | 35 |   |   |   | 8 |   |
| Net changes in assets and liabilities              |   |   | (534 | ) |   |   | (1,804 | ) |
|                                               |   |   |   |   |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES              |   |   | (1,973 | ) |   |   | (3,856 | ) |
|                                               |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:              |   |   |   |   |   |   |   |   |
| Net investment in treasury investments             |   | $ | 10,369 |   |   | $ | (60,298 | ) |
| Acquisition & development of real estate       |   |   | (90 | ) |   |   | (8,415 | ) |
| Acquisition of oil & gas properties            |   |   | (1,283 | ) |   |   | (741 | ) |
| Acquisition & development of mining properties |   |   | (10 | ) |   |   | -- |   |
| Minining property option payment                   |   |   | 1,000 |   |   |   | -- |   |
| Acquisition of property and equipment              |   |   | (168 | ) |   |   | (70 | ) |
| Proceeds from sale of property and equipment       |   |   | 5 |   |   |   | 1,084 |   |
| Net change in restricted investments               |   |   | 4,782 |   |   |   | 1,748 |   |
| NET CASH PROVIDED BY                               |   |   |   |   |   |   |   |   |
| (USED IN) INVESTING ACTIVITIES                     |   |   | 14,605 |   |   |   | (66,692 | ) |
|                                               |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:              |   |   |   |   |   |   |   |   |
| Issuance of common stock                           |   |   | -- |   |   |   | 1,528 |   |
| Proceeds from short-term construction debt         |   |   | -- |   |   |   | 8,434 |   |
| Repayments of debt                                 |   |   | (17,688 | ) |   |   | (38 | ) |
| Stock buyback program                              |   |   | (1,399 | ) |   |   | (1,892 | ) |
| NET CASH (USED IN) PROVIDED BY                     |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                               |   |   | (19,087 | ) |   |   | 8,032 |   |
|                                               |   |   |   |   |   |   |   |   |

----

| U.S. ENERGY CORP.                              |   |
|------------------------------------------------|--------|
| STATEMENTS OF CASH FLOWS                       |   |
| (Unaudited)                                    |   |
| (Amounts in thousands)                         |   |
|                                           |   |   |   |   |   |   |
|                                           |   | For the six months |   |
|                                           |   | ended June 30, |   |
|                                           |   | 2009 |   |   | 2008 |   |
| Net cash provided by operating                 |   |   |   |   |   |   |
| activities of discontinued operations          |   |   | -- |   |   |   | 67 |   |
| Net cash provided by investing                 |   |   |   |   |   |   |   |   |
| activities of discontinued operations          |   |   | -- |   |   |   | 93 |   |
| Net cash used in financing                     |   |   |   |   |   |   |   |   |
| activities of discontinued operations          |   |   | -- |   |   |   | (35 | ) |
|                                           |   |   |   |   |   |   |   |   |
| NET DECREASE IN                                |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS                      |   |   | (6,455 | ) |   |   | (62,391 | ) |
|                                           |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS                      |   |   |   |   |   |   |   |   |
|  AT BEGINNING OF PERIOD                   |   |   | 8,434 |   |   |   | 72,292 |   |
|                                           |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS                      |   |   |   |   |   |   |   |   |
| AT END OF PERIOD                               |   | $ | 1,979 |   |   | $ | 9,901 |   |
|                                           |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES:                      |   |   |   |   |   |   |   |   |
| Income tax (received) paid                     |   | $ | (144 | ) |   | $ | -- |   |
|                                           |   |   |   |   |   |   |   |   |
| Interest paid                                  |   | $ | 29 |   |   | $ | 108 |   |
|                                           |   |   |   |   |   |   |   |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   |
| Development of assets through issuance of debt |   | $ | -- |   |   | $ | 8,434 |   |
|                                           |   |   |   |   |   |   |   |   |
| Unrealized gain/(loss)                         |   | $ | 143 |   |   | $ | 96 |   |
|                                           |   |   |   |   |   |   |   |   |

----

1) 

----

----

| Components of Properties & Equipment        |   |
|-------------------------------------------------|--------|
| (Amounts in thousands)                          |   |
|                                            |   |   |   |   |   |   |
|                                            |   | June 30, |   |   | December 31, |   |
|                                            |   | 2009 |   |   | 2008 |   |
|  Oil & Gas properties                  |   |   |   |   |   |   |
|  Unevaluated                               |   | $ | 3,217 |   |   | $ | 2,968 |   |
|  Well in progress                          |   |   | 261 |   |   |   | -- |   |
|  Evaluated                                 |   |   | 5,031 |   |   |   | 5,320 |   |
|                                            |   |   | 8,509 |   |   |   | 8,288 |   |
|  Less Accumulated depreciation             |   |   |   |   |   |   |   |   |
|  depletion and mortization                 |   |   | (1,702 | ) |   |   | (382 | ) |
|  Net book value                            |   | $ | 6,807 |   |   | $ | 7,906 |   |
|                                            |   |   |   |   |   |   |   |   |
|  Mining properties                         |   | $ | 22,964 |   |   | $ | 23,950 |   |
|                                            |   |   |   |   |   |   |   |   |
|  Commercial real estate                    |   | $ | 24,562 |   |   | $ | 24,467 |   |
|  Less Accumulated depreciation             |   |   |   |   |   |   |   |   |
|  depletion and mortization                 |   |   | (933 | ) |   |   | (469 | ) |
|  Net book value                            |   | $ | 23,629 |   |   | $ | 23,998 |   |
|                                            |   |   |   |   |   |   |   |   |
|  Building, land and equipment              |   | $ | 14,563 |   |   |   | 14,399 |   |
|  Less Accumulated depreciation             |   |   |   |   |   |   |   |   |
|  depletion and mortization                 |   |   | (5,046 | ) |   |   | (4,760 | ) |
|  Net book value                            |   | $ | 9,517 |   |   | $ | 9,639 |   |
|                                            |   |   |   |   |   |   |   |   |
|  Total Property plant & equipment, net |   | $ | 62,917 |   |   | $ | 65,493 |   |
|                                            |   |   |   |   |   |   |   |   |

----

----

| Asset Retirement Obligations          |   |
|---------------------------------------|--------|
| (Amounts in thousands)                |   |
|                                  |   |   |   |   |   |   |
|                                  |   | June 30, |   |   | December 31, |   |
|                                  |   | 2009 |   |   | 2008 |   |
| Beginning asset retirement obligation |   | $ | 144 |   |   | $ | 133 |   |
|                                  |   |   |   |   |   |   |   |   |
| Accretion of discount                 |   |   | 6 |   |   |   | 9 |   |
|                                  |   |   |   |   |   |   |   |   |
| Liabilities incurred                  |   |   | -- |   |   |   | 25 |   |
| Liabilities settled                   |   |   | -- |   |   |   | (23 | ) |
|                                  |   |   |   |   |   |   |   |   |
| Ending asset retirement obligation    |   | $ | 150 |   |   | $ | 144 |   |
|                                  |   |   |   |   |   |   |   |   |

| Comprehensive Income (loss)                     |   |
|-------------------------------------------------|--------|
| (Amounts in thousands)                          |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | For the three months |   |   | For the six months |   |
|                                            |   | ending June 30, |   |   | ending June 30, |   |
|                                            |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Net loss                                        |   | $ | (2,885 | ) |   | $ | (1,750 | ) |   | $ | (5,232 | ) |   | $ | (3,466 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive gain/(loss) from the              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| unrealized gain/(loss) on marketable securities |   |   | (231 | ) |   |   | (56 | ) |   |   | 223 |   |   |   | (175 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred income taxes                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on marketable securities                        |   |   | 79 |   |   |   | 22 |   |   |   | (80 | ) |   |   | 45 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive (loss)/gain                       |   | $ | (3,037 | ) |   | $ | (1,784 | ) |   | $ | (5,089 | ) |   | $ | (3,596 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (Amounts in thousands)                      |   |
|---------------------------------------------|--------|
|                                        |   |   |   |   |   |   |
|                                        |   | June 30, |   |   | December 31, |   |
|                                        |   | 2009 |   |   | 2008 |   |
|  Short term Debt                       |   |   |   |   |   |   |
|  Construction note - collateralized by |   |   |   |   |   |   |
|  property, interest at 2.71%           |   | $ | -- |   |   | $ | 16,813 |   |
|                                        |   |   |   |   |   |   |   |   |
|  Long term Debt                        |   |   |   |   |   |   |   |   |
|  Real estate note - collateralized by  |   |   |   |   |   |   |   |   |
|  property, interest at 6%              |   | $ | 1,000 |   |   | $ | 1,875 |   |
|                                        |   |   |   |   |   |   |   |   |
|  Less current portion                  |   |   | (200 | ) |   |   | (875 | ) |
|  Totals                                |   | $ | 800 |   |   | $ | 1,000 |   |
|                                        |   |   |   |   |   |   |   |   |

----

| (Amounts in thousands, except for share amounts) |   |
|--------------------------------------------------|--------|
|                                             |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   | Additional |   |
|                                             |   | Common Stock |   |   | Paid-In |   |
|                                             |   | Shares |   |   | Amount |   |   | Capital |   |
|                                             |   |   |   |   |   |   |   |   |   |
|  Balance December 31, 2008                  |   |   | 21,935,129 |   |   | $ | 219 |   |   | $ | 93,951 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  2001 stock compensation plan               |   |   | 40,000 |   |   |   | 1 |   |   |   | 70 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expense of employee options                |   |   | - |   |   |   | - |   |   |   | 709 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Stock options issued to outside directors  |   |   | - |   |   |   | - |   |   |   | 28 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expense of company warrants issued         |   |   | - |   |   |   | - |   |   |   | 7 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Common stock buy back program              |   |   | (706,071 | ) |   |   | (7 | ) |   |   | (1,391 | ) |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   | 21,269,058 |   |   | $ | 213 |   |   | $ | 93,374 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                        |   | June 30, 2009          |      |
|-------------------------------------------------------------|--------|------------------------|-----------|
|                                                        |   | Employee Stock Options |      |   | Stock Purchase Warrants |   |
|                                                        |   |                   |      |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                        |   |                   |      |   | Average |   |   |   |   |   | Average |   |
|                                                        |   |                   |      |   | Exercise |   |   |   |   |   | Exercise |   |
|                                                        |   | Options                |      |   | Price |   |   | Warrants |   |   | Price |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |
| Outstanding balance at December 31, 2008                    |   |                   | 3,717,098 |   |   | $ | 3.63 |   |   |   | 1,036,387 |   |   | $ | 3.43 |   |
| Granted                                                     |   |                   | -         |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Forfeited                                                   |   |                   | -         |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Expired                                                     |   |                   | -         |   |   | $ | - |   |   |   | (101,789 | ) |   | $ | 7.02 |   |
| Exercised                                                   |   |                   | -         |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Outstanding at June 30, 2009                                |   |                   | 3,717,098 |   |   | $ | 3.63 |   |   |   | 934,598 |   |   | $ | 3.04 |   |
| Exercisable at June 30, 2009                                |   |                   | 2,432,932 |   |   | $ | 3.50 |   |   |   | 804,598 |   |   | $ | 3.13 |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Remaining Contractual Life - Years         |   |                   |      |   |   |   | 6.08 |   |   |   |   |   |   |   | 2.85 |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Aggregate intrinsic value of options / warrants outstanding |   |                   |      |   |   | $ | - |   |   |   |   |   |   | $ | - |   |
|                                                        |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| U.S. ENERGY CORP.                      |   |
|----------------------------------------|--------|
| SEGMENT INFORMATION                    |   |
| (Unaudited)                            |   |
| (Amounts in thousands)                 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | For the three months |   |   | For the six months |   |
|                                   |   | ended June 30, |   |   | ended June 30, |   |
|                                   |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenues:                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                            |   | $ | 745 |   |   | $ | 313 |   |   | $ | 1,479 |   |   | $ | 431 |   |
| Oil & gas                          |   |   | 645 |   |   |   | -- |   |   |   | 1,319 |   |   |   | -- |   |
| Mineral properties management fees     |   |   | 4 |   |   |   | 16 |   |   |   | 9 |   |   |   | 47 |   |
| Total revenues:                        |   |   | 1,394 |   |   |   | 329 |   |   |   | 2,807 |   |   |   | 478 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                            |   |   | 498 |   |   |   | 234 |   |   |   | 1,010 |   |   |   | 401 |   |
| Oil and gas                            |   |   | 678 |   |   |   | -- |   |   |   | 1,490 |   |   |   | -- |   |
| Impairment of oil & gas properties |   |   | -- |   |   |   | -- |   |   |   | 1,063 |   |   |   | -- |   |
| Mineral properties                     |   |   | 576 |   |   |   | 812 |   |   |   | 1,019 |   |   |   | 1,074 |   |
| Total operating expenses:              |   |   | 1,752 |   |   |   | 1,046 |   |   |   | 4,582 |   |   |   | 1,475 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                            |   |   | -- |   |   |   | 74 |   |   |   | 19 |   |   |   | 74 |   |
| Mineral properties                     |   |   | 30 |   |   |   | -- |   |   |   | 30 |   |   |   | -- |   |
| Total interest expense:                |   |   | 30 |   |   |   | 74 |   |   |   | 49 |   |   |   | 74 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating gain/(loss)                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                            |   |   | 247 |   |   |   | 5 |   |   |   | 450 |   |   |   | (44 | ) |
| Oil & gas                          |   |   | (33 | ) |   |   | -- |   |   |   | (1,234 | ) |   |   | -- |   |
| Mineral properties                     |   |   | (602 | ) |   |   | (796 | ) |   |   | (1,040 | ) |   |   | (1,027 | ) |
| Operating (loss)                       |   |   | (388 | ) |   |   | (791 | ) |   |   | (1,824 | ) |   |   | (1,071 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other revenues and expenses:           |   |   | (1,808 | ) |   |   | (1,529 | ) |   |   | (3,831 | ) |   |   | (3,483 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) before discontinued             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations and income taxes            |   | $ | (2,196 | ) |   | $ | (2,320 | ) |   | $ | (5,655 | ) |   | $ | (4,554 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation expense:                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                            |   | $ | 261 |   |   | $ | 98 |   |   | $ | 521 |   |   | $ | 148 |   |
| Oil & gas                          |   |   | 607 |   |   |   | -- |   |   |   | 1,320 |   |   |   | -- |   |
| Mineral properties                     |   |   | 13 |   |   |   | 7 |   |   |   | 28 |   |   |   | 18 |   |
| Corporate                              |   |   | 100 |   |   |   | 117 |   |   |   | 201 |   |   |   | 241 |   |
| Total depreciation expense             |   | $ | 981 |   |   | $ | 222 |   |   | $ | 2,070 |   |   | $ | 407 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                     |   |                                                    |  As of |
|--------------------------|--------|---------------------------------------------------------|-------------|
|                     |   |                                                    | June 30,    |   | December 31, |
|                     |   |                                                    | 2009        |   | 2008 |
| Assets by segment        |   |                                                    |        |   |
| Real estate              |   |  $       25,756 |        |  $       30,980 |
| Oil & Gas properties |   | 7,180                                                   |        | 8,523 |
| Mineral properties       |   | 22,991                                                  |        | 24,927 |
| Corporate assets         |   | 62,171                                                  |        | 78,201 |
| Total assets             |   |  $      118,098      |        |  $     142,631 |
|                     |   |                                                    |        |   |   |

----

ITEM

| ·   | Operations consumed $2.0 million, Investing Activities provided $14.6 million and Financing Activities consumed $19.1 million for a net decrease in cash of $6.5 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For a discussion on cash consumed in Operations please refer to Results of Operations below. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Cash provided by investing activities was generated primarily through the redemption of U.S. Government Treasury Bills, $10.4 million and restricted cash investments held as collateral for a construction loan, $4.8 million, for a total of $15.2 million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Additional cash was provided by investing activities as a result of the Company’s receipt of the first of six anticipated payments of $1.0 million from Thompson Creek Metals USA, (“TCM”) as an option payment on the Mount Emmons property. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Investing activities also consumed cash through the completion of the development of its multifamily housing unit in Gillette, Wyoming, $90,000, the acquisition and development of oil and gas properties, $1.3 million, and the purchase of property and equipment, $168,000. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The Company retired $17.7 million in debt during the six months ended June 30, 2009.  This debt consisted of $16.8 million for the construction of the Company’s multifamily housing property in Gillette, Wyoming and $875,000 for the joint purchase with TCM of a parcel of property. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company also purchased 706,071 shares of its common stock pursuant to its stock buyback plan which consumed $1.4 million during the six months ended June 30, 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                              |   |               |    |   |     |   |   | 2009 Period Compared to 2008 Period |   |
|-----------------------------------|--------|--------------------|---------|--------|----------|--------|--------|-------------------------------------|--------|
|                              |   | Three Months Ended |    |   |     |   |   | %                                   |   |
|                              |   | June 30,           |    |   | Increase |   |   | Increase                            |   |
|                              |   | 2009               |    |   | 2008     |   |   | (Decrease)                          |   |   | (Decrease) |   |
| Production volumes                |   |               |    |   |     |   |   |                                |   |   |   |   |
| Oil and condensate (Bbls)         |   |               | 3,484   |   |     |   | --     |                                |   |   | 3,484 |   |   |   | 100 | % |
| Natural gas (Mcf)                 |   |               | 114,499 |   |     |   | --     |                                |   |   | 114,499 |   |   |   | 100 | % |
| Natural gas liquids (Bbls)        |   |               | 1,003   |   |     |   | --     |                                |   |   | 1,003 |   |   |   | 100 | % |
| Average sales prices              |   |               |    |   |     |   |   |                                |   |   |   |   |   |   |   |   |
| Oil and condensate (per Bbl)      |   | $                  | 59.13   |   |     | $      | --     |                                |   | $ | 59.13 |   |   |   | 100 | % |
| Natural gas (per Mcf)             |   |               | 3.45    |   |     |   | --     |                                |   |   | 3.45 |   |   |   | 100 | % |
| Natural gas liquids (per Bbl)     |   |               | 43.68   |   |     |   | --     |                                |   |   | 43.68 |   |   |   | 100 | % |
| Operating revenues (in thousands) |   |               |    |   |     |   |   |                                |   |   |   |   |   |   |   |   |
| Oil and condensate                |   | $                  | 206     |   |     | $      | --     |                                |   | $ | 206 |   |   |   | 100 | % |
| Natural gas                       |   |               | 395     |   |     |   | --     |                                |   |   | 395 |   |   |   | 100 | % |
| Natural Gas Liquids               |   |               | 44      |   |     |   | --     |                                |   |   | 44 |   |   |   | 100 | % |
| Total Operating Revenue           |   |               | 645     |   |     |   | --     |                                |   |   | 645 |   |   |   | 100 | % |
| Lease Operating Expense           |   |               | (71     | )      |     |   | --     |                                |   |   | (71 | ) |   |   | 100 | % |
| Gain before DD&A              |   |               | 574     |   |     |   | --     |                                |   |   | 574 |   |   |   | 100 | % |
| DD&A                          |   |               | (607    | )      |     |   | --     |                                |   |   | (607 | ) |   |   | 100 | % |
| Gain (Loss)                       |   | $                  | (33     | )      |     | $      | --     |                                |   | $ | (33 | ) |   |   | 100 | % |
|                              |   |               |    |   |     |   |   |                                |   |   |   |   |   |   |   |   |

----

----

|                              |   |             |    |   |     |   |   | 2009 Period Compared to 2008 Period |   |
|-----------------------------------|--------|------------------|---------|--------|----------|--------|--------|-------------------------------------|--------|
|                              |   | Six Months Ended |    |   |     |   |   | %                                   |   |
|                              |   | June 30,         |    |   | Increase |   |   | Increase                            |   |
|                              |   | 2009             |    |   | 2008     |   |   | (Decrease)                          |   |   | (Decrease) |   |
| Production volumes                |   |             |    |   |     |   |   |                                |   |   |   |   |
| Oil and condensate (Bbls)         |   |             | 7,100   |   |     |   | --     |                                |   |   | 7,100 |   |   |   | 100 | % |
| Natural gas (Mcf)                 |   |             | 230,877 |   |     |   | --     |                                |   |   | 230,877 |   |   |   | 100 | % |
| Natural gas liquids (Bbls)        |   |             | 1,003   |   |     |   | --     |                                |   |   | 1,003 |   |   |   | 100 | % |
| Average sales prices              |   |             |    |   |     |   |   |                                |   |   |   |   |   |   |   |   |
| Oil and condensate (per Bbl)      |   | $                | 46.34   |   |     | $      | --     |                                |   | $ | 46.34 |   |   |   | 100 | % |
| Natural gas (per Mcf)             |   |             | 4.10    |   |     |   | --     |                                |   |   | 4.10 |   |   |   | 100 | % |
| Natural gas liquids (per Bbl)     |   |             | 43.68   |   |     |   | --     |                                |   |   | 43.68 |   |   |   | 100 | % |
| Operating revenues (in thousands) |   |             |    |   |     |   |   |                                |   |   |   |   |   |   |   |   |
| Oil and condensate                |   | $                | 329     |   |     | $      | --     |                                |   | $ | 329 |   |   |   | 100 | % |
| Natural gas                       |   |             | 946     |   |     |   | --     |                                |   |   | 946 |   |   |   | 100 | % |
| Natural Gas Liquids               |   |             | 44      |   |     |   | --     |                                |   |   | 44 |   |   |   | 100 | % |
| Total Operating Revenue           |   |             | 1,319   |   |     |   | --     |                                |   |   | 1,319 |   |   |   | 100 | % |
| Lease Operating Expense           |   |             | (170    | )      |     |   | --     |                                |   |   | (170 | ) |   |   | 100 | % |
| Impairment                        |   |             | (1,063  | )      |     |   | --     |                                |   |   | (1,063 | ) |   |   | 100 | % |
| Gain before DD&A              |   |             | 86      |   |     |   | --     |                                |   |   | 86 |   |   |   | 100 | % |
| DD&A                          |   |             | (1,320  | )      |     |   | --     |                                |   |   | (1,320 | ) |   |   | 100 | % |
| Gain (Loss)                       |   | $                | (1,234  | )      |     | $      | --     |                                |   | $ | (1,234 | ) |   |   | 100 | % |

----

----

----

| (Amounts in thousands)            |   |
|-----------------------------------|--------|
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                              |   | Payments due by period |   |
|                              |   |   |   |   | Less |   |   | One to |   |   | Three to |   |   | More than |   |
|                              |   |   |   |   | than one |   |   | Three |   |   | Five |   |   | Five |   |
|                              |   | Total |   |   | Year |   |   | Years |   |   | Years |   |   | Years |   |
|  Long-term debt obligations  |   |   | 1,000 |   |   |   | 200 |   |   |   | 600 |   |   |   | 200 |   |   |   | -- |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other long-term liabilities |   |   | 150 |   |   |   | -- |   |   |   | -- |   |   |   | 26 |   |   |   | 124 |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Totals                      |   | $ | 1,150 |   |   | $ | 200 |   |   | $ | 600 |   |   | $ | 226 |   |   | $ | 124 |   |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

ITEM

ITEM

| i.   | That the Company’s disclosure controls and procedures are designed to ensure (a) that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed,  summarized and reported, within the time periods specified in the SEC’s rules and forms, and (b) that such informationis accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | That the Company’s disclosure controls and procedures are effective. |
|-----------------|----------------------------------------------------------------------------|

----

ITEM

ITEM

ITEM 

----

ITEM 

ITEM 

| Name of Director |   | Votes For  |   | Withheld |
|------------------|--------|------------|--------|----------|
| Keith G. Larsen  |   | 16,525,397 |   | 322,997  |
| Allen S. Winters |   | 16,449,761 |   | 398,633  |

|                                                                                                          |   | Votes For  |   | Votes Against |   | Abstain |
|---------------------------------------------------------------------------------------------------------------|--------|------------|--------|---------------|--------|---------|
| Ratification of appointment of Hein & Associates LLP as independent auditors for the current fiscal year. |   | 14,482,178 |   | 214,537       |   | 42,203  |

ITEM 

----

ITEM 

|   | (a)    | Exhibits. |                                                                                                                                     |
|--------|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |      |                                                                                                                                     |
|   |   | 31.1      | Certification of Chief Executive Officer Pursuant to Rule 13a-15(e) / Rule 15d-15(e)                                                     |
|   |   | 31.2      | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) / Rule 15(e)/15d-15(e)                                               |
|   |   | 32.1      | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002 |
|   |   | 32.2      | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002 |

|   | (b)    | Reports on Form 8-K.  The Company filed eight (8) reports on Form 8-K for the quarter ended June 30, 2009.  The events reported were as follows: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                 |   |
|   |   | 1.                                                                                                                                                                   | The report filed on April 1, 2009, under Item 8.01 referenced a Participation Agreement with Houston Energy L.P. |
|   |   |                                                                                                                                                                 |   |
|   |   | 2.                                                                                                                                                                   | The report filed on April 21, 2009, under Item 5.02 and 5.03 referenced the approval of employment agreements with executive officers and the amendment to the Company’s Bylaws. |
|   |   |                                                                                                                                                                 |   |
|   |   | 3.                                                                                                                                                                   | The report filed on May 11, 2009, under Item 8.01 referenced the spudding of the first well with Houston Energy L.P. |
|   |   |                                                                                                                                                                 |   |
|   |   | 4.                                                                                                                                                                   | The report filed on May 13, 2009, under Item 8.01 referenced the reporting of First Quarter highlights and Financial results. |
|   |   |                                                                                                                                                                 |   |
|   |   | 5.                                                                                                                                                                   | The report filed on May 18, 2009, under Item 8.01 referenced the Additional Oil and Gas Participation Agreement with Houston Energy LP. |
|   |   |                                                                                                                                                                 |   |
|   |   | 6.                                                                                                                                                                   | The report filed on June 1, 2009, under Item 8.01 referenced the Initiation of Geothermal Temperature Gradient Drilling Program with Standard Steam Trust, LLC. |
|   |   |                                                                                                                                                                 |   |
|   |   | 7.                                                                                                                                                                   | The report filed on June 8, 2009, under Item 8.01 referenced the Positive Drilling Results and Completion on first well with Houston Energy L.P. |
|   |   |                                                                                                                                                                 |   |
|   |   | 8.                                                                                                                                                                   | The report filed on June 22, 2009, under Item 8.01 referenced the Drill Results from second well with Houston Energy L.P. |

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SIGNATURES

|                 |   | U.S. ENERGY CORP. |
|----------------------|--------|-------------------|
|                 |   | (Company)         |
|                 |   |              |
|                 |   |              |
|                 |   |              |
| Date: August 7, 2009 |   | By:               | /s/ Keith G. Larsen |
|                 |   |              | KEITH G. LARSEN, |
|                 |   |              | Chairman and CEO |
|                 |   |              |   |
|                 |   |              |   |
|                 |   |              |   |
|                 |   |              |   |
| Date: August 7, 2009 |   | By:               | /s/ Robert Scott Lorimer |
|                 |   |              | ROBERT SCOTT LORIMER |
|                 |   |              | Principal Financial Officer and |
|                 |   |              | Chief Accounting Officer |

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