----

| x      | Quarterly      report pursuant to section 13 or 15(d) of the Securities Exchange Act of      1934  |
|--------|----------------------------------------------------------------------------------------------------|
|   | For      the quarter ended September 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 registrant as specified in itscharter) |

| 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)          |
|                                                     |   |                     |
| Registrant's      telephone number, including area code: |   | (307)      856-9271      |

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

----

----

|          |                                                                                                                     | Page      No.     |
|---------------|--------------------------------------------------------------------------------------------------------------------------|-------------------|
| PART      I.  | FINANCIAL      INFORMATION                                                                                               |              |
|          |                                                                                                                     |              |
| Item      1.  | Financial      Statements.                                                                                               |              |
|          |                                                                                                                     |              |
|          | Condensed      Balance Sheet as of September 30, 2009 (unaudited) and December 31,      2008                             | 4-5               |
|          |                                                                                                                     |              |
|          | Condensed      Statements of Operations for the Three and Nine Months Ended September 30,      2009 and 2008 (unaudited) | 6-7               |
|          |                                                                                                                     |              |
|          | Condensed      Statements of Cash Flows for the Nine Months Ended September 30, 2009 and      2008 (unaudited)           | 8-9               |
|          |                                                                                                                     |              |
|          | Notes      to Condensed Financial Statements (unaudited)                                                                 | 10-22             |
|          |                                                                                                                     |              |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                    | 22-35             |
|          |                                                                                                                     |              |
| Item      3.  | Quantitative      and Qualitative Disclosures About Market Risk                                                          | 35-36             |
|          |                                                                                                                     |              |
| Item      4.  | Controls      and Procedures                                                                                             | 36                |
|          |                                                                                                                     |              |
| PART      II. | OTHER      INFORMATION                                                                                                   |              |
|          |                                                                                                                     |              |
| Item      1.  | Legal      Proceedings                                                                                                   | 37-38             |
|          |                                                                                                                     |              |
| Item      1A. | Risk      Factors                                                                                                        | 38-40             |
|          |                                                                                                                     |              |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                         | 41                |
|          |                                                                                                                     |              |
| Item      3.  | Defaults      Upon Senior Securities                                                                                     | 41                |
|          |                                                                                                                     |              |
| Item      4.  | Submission      of Matters to a Vote of Security Holders                                                                 | 41                |
|          |                                                                                                                     |              |
| Item      5.  | Other      Information                                                                                                   | 41                |
|          |                                                                                                                     |              |
| Item      6.  | Exhibits                                                                                                                 | 42                |
|          |                                                                                                                     |              |
|          | Signatures                                                                                                               | 43                |
|          |                                                                                                                     |              |
|          | Certifications                                                                                                           | See      Exhibits |

----

| U.S.      ENERGY CORP.                                    |   |
|-----------------------------------------------------------|--------|
| CONDENSED      BALANCE SHEETS                             |   |
| ASSETS                                                    |   |
| (Amounts      in thousands)                               |   |
|                                                      |   |   |   |   |   |   |
|                                                      |   | September      30, |   |   | December      31, |   |
|                                                      |   | 2009 |   |   | 2008 |   |
|                                                      |   | (Unaudited) |   |   |   |   |
| CURRENT      ASSETS:                                      |   |   |   |   |   |   |
| Cash      and cash equivalents                            |   | $ | 11,671 |   |   | $ | 8,434 |   |
| Marketable      securities                                |   |   |   |   |   |   |   |   |
| Held      to maturity - treasuries                        |   |   | 27,224 |   |   |   | 51,152 |   |
| Available      for sale securities                        |   |   | 1,170 |   |   |   | 576 |   |
| Accounts      receivable                                  |   |   |   |   |   |   |   |   |
| Trade                                                     |   |   | 408 |   |   |   | 600 |   |
| Reimbursable      project costs                           |   |   | 2 |   |   |   | 442 |   |
| Income      taxes                                         |   |   | 353 |   |   |   | 5,896 |   |
| Restricted      investments                               |   |   | -- |   |   |   | 4,929 |   |
| Other      current assets                                 |   |   | 570 |   |   |   | 738 |   |
| Total      current assets                                 |   |   | 41,398 |   |   |   | 72,767 |   |
|                                                      |   |   |   |   |   |   |   |   |
| INVESTMENT                                                |   |   | 3,827 |   |   |   | 3,455 |   |
|                                                      |   |   |   |   |   |   |   |   |
| PROPERTIES      AND EQUIPMENT:                            |   |   |   |   |   |   |   |   |
| Oil      & gas properties under full cost method, net |   |   | 13,723 |   |   |   | 7,906 |   |
| Undeveloped      mining claims                            |   |   | 22,967 |   |   |   | 23,950 |   |
| Commercial      real estate, net                          |   |   | 23,433 |   |   |   | 23,998 |   |
| Property,      plant and equipment, net                   |   |   | 9,374 |   |   |   | 9,639 |   |
| Net      properties and equipment                         |   |   | 69,497 |   |   |   | 65,493 |   |
|                                                      |   |   |   |   |   |   |   |   |
| OTHER      ASSETS                                         |   |   | 1,161 |   |   |   | 916 |   |
| Total      assets                                         |   | $ | 115,883 |   |   | $ | 142,631 |   |
|                                                      |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP.                              |   |
|-----------------------------------------------------|--------|
| CONDENSED      BALANCE SHEETS                       |   |
| LIABILITIES      AND SHAREHOLDERS' EQUITY           |   |
| (Amounts      in thousands)                         |   |
|                                                |   |   |   |   |   |   |
|                                                |   | September      30, |   |   | December      31, |   |
|                                                |   | 2009 |   |   | 2008 |   |
|                                                |   | (Unaudited) |   |   |   |   |
| CURRENT      LIABILITIES:                           |   |   |   |   |   |   |
| Accounts      payable                               |   | $ | 243 |   |   | $ | 898 |   |
| Accrued      compensation                           |   |   | 585 |   |   |   | 682 |   |
| Short      term construction debt                   |   |   | -- |   |   |   | 16,813 |   |
| Current      portion of long-term debt              |   |   | 200 |   |   |   | 875 |   |
| Other      current liabilities                      |   |   | 246 |   |   |   | 715 |   |
| Total      current liabilities                      |   |   | 1,274 |   |   |   | 19,983 |   |
|                                                |   |   |   |   |   |   |   |   |
| LONG-TERM      DEBT, net of current portion         |   |   | 800 |   |   |   | 1,000 |   |
|                                                |   |   |   |   |   |   |   |   |
| DEFERRED      TAX LIABILITY                         |   |   | 7,869 |   |   |   | 8,945 |   |
|                                                |   |   |   |   |   |   |   |   |
| ASSET      RETIREMENT OBLIGATIONS                   |   |   | 153 |   |   |   | 144 |   |
|                                                |   |   |   |   |   |   |   |   |
| OTHER      ACCRUED LIABILITIES                      |   |   | 717 |   |   |   | 726 |   |
|                                                |   |   |   |   |   |   |   |   |
| SHAREHOLDERS'      EQUITY:                          |   |   |   |   |   |   |   |   |
| Common      stock, $.01 par value; unlimited shares |   |   |   |   |   |
| authorized;      21,289,058 and 21,935,129          |   |   |   |   |   |   |   |   |
| shares      issued, respectively                    |   |   | 213 |   |   |   | 219 |   |
| Additional      paid-in capital                     |   |   | 93,790 |   |   |   | 93,951 |   |
| Accumulated      surplus                            |   |   | 10,687 |   |   |   | 17,663 |   |
| Unrealized      gain on marketable securities       |   |   | 380 |   |   |   | -- |   |
| Total      shareholders' equity                     |   |   | 105,070 |   |   |   | 111,833 |   |
| Total      liabilities and shareholders' equity     |   | $ | 115,883 |   |   | $ | 142,631 |   |
|                                                |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP.                             |   |
|----------------------------------------------------|--------|
| CONDENSED      STATEMENTS OF OPERATIONS            |   |
| (Unaudited)                                        |   |
| (Amounts      in thousands, except per share data) |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | Three      months ended September 30, |   |   | Nine      months ended September 30, |   |
|                                               |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| OPERATING      REVENUES:                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                                   |   | $ | 686 |   |   | $ | 497 |   |   | $ | 2,165 |   |   | $ | 995 |   |
| Oil      & gas                                 |   |   | 593 |   |   |   | 67 |   |   |   | 1,912 |   |   |   | -- |   |
| Management      fees and other                     |   |   | 5 |   |   |   | 5 |   |   |   | 14 |   |   |   | 52 |   |
|                                               |   |   | 1,284 |   |   |   | 569 |   |   |   | 4,091 |   |   |   | 1,047 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      COSTS AND EXPENSES:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                                   |   |   | 507 |   |   |   | 311 |   |   |   | 1,517 |   |   |   | 712 |   |
| Oil      and gas                                   |   |   | 446 |   |   |   | -- |   |   |   | 1,936 |   |   |   | -- |   |
| Impairment      of oil and gas properties          |   |   | 405 |   |   |   | -- |   |   |   | 1,468 |   |   |   | -- |   |
| Water      treatment plant                         |   |   | 379 |   |   |   | 326 |   |   |   | 1,398 |   |   |   | 724 |   |
| Mineral      holding costs                         |   |   | -- |   |   |   | 883 |   |   |   | -- |   |   |   | 1,558 |   |
| General      and administrative                    |   |   | 1,838 |   |   |   | 1,697 |   |   |   | 5,675 |   |   |   | 5,969 |   |
|                                               |   |   | 3,575 |   |   |   | 3,217 |   |   |   | 11,994 |   |   |   | 8,963 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      LOSS                                |   |   | (2,291 | ) |   |   | (2,648 | ) |   |   | (7,903 | ) |   |   | (7,916 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME & (EXPENSES):                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain      on sales of assets                       |   |   | (46 | ) |   |   | 12 |   |   |   | (41 | ) |   |   | (17 | ) |
| Equity      loss                                   |   |   | (339 | ) |   |   | -- |   |   |   | (505 | ) |   |   | -- |   |
| Interest      income                               |   |   | 88 |   |   |   | 324 |   |   |   | 264 |   |   |   | 1,175 |   |
| Interest      expense                              |   |   | (20 | ) |   |   | (146 | ) |   |   | (78 | ) |   |   | (254 | ) |
|                                               |   |   | (317 | ) |   |   | 190 |   |   |   | (360 | ) |   |   | 904 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      BEFORE PROVISION                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FOR      INCOME TAXES AND                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED      OPERATIONS                       |   |   | (2,608 | ) |   |   | (2,458 | ) |   |   | (8,263 | ) |   |   | (7,012 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INCOME      TAXES:                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      benefit from (provision for)    |   |   | (3 | ) |   |   | 1,881 |   |   |   | 210 |   |   |   | 4,003 |   |
|  Deferred      benefit from (provision for)   |   |   | 867 |   |   |   | (819 | ) |   |   | 1,077 |   |   |   | (1,563 | ) |
|                                               |   |   | 864 |   |   |   | 1,062 |   |   |   | 1,287 |   |   |   | 2,440 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM CONTINUING                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATIONS                                         |   |   | (1,744 | ) |   |   | (1,396 | ) |   |   | (6,976 | ) |   |   | (4,572 | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED      OPERATIONS                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations             |   |   | -- |   |   |   | (211 | ) |   |   | -- |   |   |   | (502 | ) |
| Gain      on sale of discontinued                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations      (net of taxes)                     |   |   | -- |   |   |   | 5,408 |   |   |   | -- |   |   |   | 5,408 |   |
|                                               |   |   | -- |   |   |   | 5,197 |   |   |   | -- |   |   |   | 4,906 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      (LOSS) INCOME                             |   | $ | (1,744 | ) |   | $ | 3,801 |   |   | $ | (6,976 | ) |   | $ | 334 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP.                             |   |
|----------------------------------------------------|--------|
| CONDENSED      STATEMENTS OF OPERATIONS            |   |
| (Unaudited)                                        |   |
| (Amounts      in thousands, except per share data) |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   | Three      months ended September 30, |   |   | Nine      months ended September 30, |   |
|                                               |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| PER      SHARE DATA                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted loss                        |   |   |   |   |   |   |   |   |   |   |   |   |
| from      continuing operations                    |   | $ | (0.09 | ) |   | $ | (0.06 | ) |   | $ | (0.33 | ) |   | $ | (0.19 | ) |
| Basic      and diluted gain                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from      discontinued operations                  |   |   | -- |   |   |   | 0.22 |   |   |   | -- |   |   |   | 0.20 |   |
| Basic      and diluted (loss) gain per share       |   | $ | (0.09 | ) |   | $ | 0.16 |   |   | $ | (0.33 | ) |   | $ | 0.01 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      AND DILUTED WEIGHTED                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AVERAGE      SHARES OUTSTANDING                    |   |   | 21,288,841 |   |   |   | 23,505,340 |   |   |   | 21,416,869 |   |   |   | 23,629,490 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      loss                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from      continuing operations                    |   | $ | (0.09 | ) |   | $ | (0.06 | ) |   | $ | (0.33 | ) |   | $ | (0.19 | ) |
| Diluted      earnings                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| from      discontinued operations                  |   |   | -- |   |   |   | 0.22 |   |   |   | -- |   |   |   | 0.20 |   |
| Diluted      (loss) earnings per share             |   | $ | (0.09 | ) |   | $ | 0.16 |   |   | $ | (0.33 | ) |   | $ | 0.01 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED      WEIGHTED AVERAGE                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES      OUTSTANDING                            |   |   | 21,288,841 |   |   |   | 23,505,340 |   |   |   | 21,416,869 |   |   |   | 23,629,490 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| U.S.      ENERGY CORP.                                  |   |
|---------------------------------------------------------|--------|
| CONDENSED      STATEMENTS OF CASH FLOWS                 |   |
| (Unaudited)                                             |   |
| (Amounts      in thousands)                             |   |
|                                                    |   |   |   |   |   |   |
|                                                    |   | For      the nine months ended September 30, |   |
|                                                    |   | 2009 |   |   | 2008 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:              |   |   |   |   |   |   |
| Net      (loss) income                                  |   | $ | (6,976 | ) |   | $ | 334 |   |
| Gain      on the sale of SGMI stock                     |   |   | -- |   |   |   | (5,407 | ) |
| Loss      from discontinued operations                  |   |   | -- |   |   |   | 501 |   |
| Loss      from continuing operations                    |   |   | (6,976 | ) |   |   | (4,572 | ) |
| Reconcile      net loss to net cash used in operations  |   |   |   |   |   |   |   |   |
| Depreciation,      depletion & amortization         |   |   | 2,918 |   |   |   | 688 |   |
| Accretion      of discount on treasury investment       |   |   | (160 | ) |   |   | (992 | ) |
| Impairment      of oil and gas properties               |   |   | 1,468 |   |   |   | -- |   |
| Equity      loss from Standard Steam                    |   |   | 505 |   |   |   | -- |   |
| Income      tax receivable                              |   |   | 5,543 |   |   |   | (3,399 | ) |
| Deferred      income taxes                              |   |   | (1,077 | ) |   |   | 1,563 |   |
| Loss      on sale of assets                             |   |   | 41 |   |   |   | 17 |   |
| Noncash      compensation                               |   |   | 1,283 |   |   |   | 2,135 |   |
| Noncash      services                                   |   |   | 50 |   |   |   | 24 |   |
| Net      changes in assets and liabilities              |   |   | (741 | ) |   |   | 187 |   |
| NET      CASH PROVIDED BY                               |   |   |   |   |   |   |   |   |
| (USED      IN) OPERATING ACTIVITIES                     |   |   | 2,854 |   |   |   | (4,349 | ) |
|                                                    |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:              |   |   |   |   |   |   |   |   |
| Net      investment in treasury investments             |   | $ | 24,088 |   |   | $ | (67,569 | ) |
| Investment      in Standard Steam                       |   |   | (877 | ) |   |   | -- |   |
| Acquisition      & development of real estate       |   |   | (91 | ) |   |   | (11,001 | ) |
| Acquisition      of oil & gas properties            |   |   | (9,078 | ) |   |   | (4,534 | ) |
| Acquisition      & development of mining properties |   |   | (10 | ) |   |   | (518 | ) |
| Minining      property option payment                   |   |   | 1,000 |   |   |   | -- |   |
| Acquisition      of property and equipment              |   |   | (249 | ) |   |   | (56 | ) |
| Proceeds      from sale of property and equipment       |   |   | 5 |   |   |   | 1,097 |   |
| Net      change in restricted investments               |   |   | 4,682 |   |   |   | 1,704 |   |
| NET      CASH PROVIDED BY                               |   |   |   |   |   |   |   |   |
| (USED      IN) INVESTING ACTIVITIES                     |   |   | 19,470 |   |   |   | (80,877 | ) |
|                                                    |   |   |   |   |   |   |   |   |

----

| CONDENSED      STATEMENTS OF CASH FLOWS             |   |
|-----------------------------------------------------|--------|
| (Unaudited)                                         |   |
| (Amounts      in thousands)                         |   |
|                                                |   |   |   |   |   |   |
|                                                |   | For      the nine months ended September 30, |   |
|                                                |   | 2009 |   |   | 2008 |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:          |   |   |   |   |   |   |
| Issuance      of common stock                       |   | $ | -- |   |   |  $ | 1,528 |   |
| Tax      benefit from the exercise of stock options |   |   | -- |   |   |   | 171 |   |
| Proceeds      from short-term construction debt     |   |   | -- |   |   |   | 10,945 |   |
| Repayments      of debt                             |   |   | (17,688 | ) |   |   | (57 | ) |
| Stock      buyback program                          |   |   | (1,399 | ) |   |   | (2,832 | ) |
| NET      CASH (USED IN) PROVIDED BY                 |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                           |   |   | (19,087 | ) |   |   | 9,755 |   |
|                                                |   |   |   |   |   |   |   |   |
| Net      cash used in operating                     |   |   |   |   |   |   |   |   |
| activities      of discontinued operations          |   |   | -- |   |   |   | (76 | ) |
| Net      cash provided by investing                 |   |   |   |   |   |   |   |   |
| activities      of discontinued operations          |   |   | -- |   |   |   | 4,402 |   |
| Net      cash used in financing                     |   |   |   |   |   |   |   |   |
| activities      of discontinued operations          |   |   | -- |   |   |   | -- |   |
|                                                |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN                     |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                      |   |   | 3,237 |   |   |   | (71,145 | ) |
|                                                |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                      |   |   |   |   |   |   |   |   |
|  AT      BEGINNING OF PERIOD                   |   |   | 8,434 |   |   |   | 72,292 |   |
|                                                |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                      |   |   |   |   |   |   |   |   |
| AT      END OF PERIOD                               |   | $ | 11,671 |   |   | $ | 1,147 |   |
|                                                |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES:                      |   |   |   |   |   |   |   |   |
| Income      tax received                            |   | $ | (5,753 | ) |   | $ | (945 | ) |
|                                                |   |   |   |   |   |   |   |   |
| Interest      paid                                  |   | $ | 34 |   |   | $ | 48 |   |
|                                                |   |   |   |   |   |   |   |   |
| NON-CASH      INVESTING AND FINANCING ACTIVITIES:   |   |   |   |   |   |   |   |   |
|                                                |   |   |   |   |   |   |   |   |
| Unrealized      gain/(loss)                         |   | $ | 143 |   |   | $ | (459 | ) |
|                                                |   |   |   |   |   |   |   |   |

----

----

----

----

| Components      of Properties & Equipment |   |
|-----------------------------------------------|--------|
| (Amounts      in thousands)                   |   |
|                                          |   |   |   |   |   |   |
|                                          |   | September      30, |   |   | December      31, |   |
|                                          |   | 2009 |   |   | 2008 |   |
|  Oil      & Gas properties           |   |   |   |   |   |   |
|  Unevaluated                             |   | $ | 3,231 |   |   | $ | 2,968 |   |
|  Well      in progress                   |   |   | 8,087 |   |   |   | -- |   |
|  Evaluated                               |   |   | 4,582 |   |   |   | 5,320 |   |
|                                          |   |   | 15,900 |   |   |   | 8,288 |   |
|  Less      accumulated depreciation      |   |   |   |   |   |   |   |   |
|  depletion      and amortization         |   |   | (2,177 | ) |   |   | (382 | ) |
|  Net      book value                     |   | $ | 13,723 |   |   | $ | 7,906 |   |
|                                          |   |   |   |   |   |   |   |   |
|  Mining      properties                  |   | $ | 22,967 |   |   | $ | 23,950 |   |
|                                          |   |   |   |   |   |   |   |   |
|  Commercial      real estate             |   | $ | 24,599 |   |   | $ | 24,467 |   |
|  Less      accumulated depreciation      |   |   |   |   |   |   |   |   |
|  depletion      and mortization          |   |   | (1,166 | ) |   |   | (469 | ) |
|  Net      book value                     |   | $ | 23,433 |   |   | $ | 23,998 |   |
|                                          |   |   |   |   |   |   |   |   |
|  Building,      land and equipment       |   | $ | 14,131 |   |   |   | 14,399 |   |
|  Less      accumulated depreciation      |   |   |   |   |   |   |   |   |
|  depletion      and amortization         |   |   | (4,757 | ) |   |   | (4,760 | ) |
|  Net      book value                     |   | $ | 9,374 |   |   | $ | 9,639 |   |
|  Totals                                  |   | $ | 69,497 |   |   | $ | 65,493 |   |
|                                          |   |   |   |   |   |   |   |   |

----

----

----

----

| Asset      Retirement Obligations          |   |
|--------------------------------------------|--------|
| (Amounts      in thousands)                |   |
|                                       |   |   |   |   |   |   |
|                                       |   | September      30, |   |   | December      31, |   |
|                                       |   | 2009 |   |   | 2008 |   |
| Beginning      asset retirement obligation |   | $ | 144 |   |   | $ | 133 |   |
|                                       |   |   |   |   |   |   |   |   |
| Accretion      of estimated ARO            |   |   | 9 |   |   |   | 9 |   |
|                                       |   |   |   |   |   |   |   |   |
| Liabilities      incurred                  |   |   | -- |   |   |   | 25 |   |
| Liabilities      settled                   |   |   | -- |   |   |   | (23 | ) |
|                                       |   |   |   |   |   |   |   |   |
| Ending      asset retirement obligation    |   | $ | 153 |   |   | $ | 144 |   |
|                                       |   |   |   |   |   |   |   |   |

| (Amounts      in thousands)                          |   |
|------------------------------------------------------|--------|
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | For      the three months |   |   | For      the nine months |   |
|                                                 |   | ending      September 30, |   |   | ending      September 30, |   |
|                                                 |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Net      loss                                        |   | $ | (1,744 | ) |   | $ | 3,801 |   |   | $ | (6,976 | ) |   | $ | 334 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      gain/(loss) from the              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| unrealized      gain/(loss) on marketable securities |   |   | 371 |   |   |   | (110 | ) |   |   | 594 |   |   |   | (285 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      income taxes                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on      marketable securities                        |   |   | (134 | ) |   |   | 39 |   |   |   | (214 | ) |   |   | 84 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      (loss)/gain                       |   | $ | (1,507 | ) |   | $ | 3,730 |   |   | $ | (6,596 | ) |   | $ | 133 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (Amounts      in thousands)                      |   |
|--------------------------------------------------|--------|
|                                             |   |   |   |   |   |   |
|                                             |   | September      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               |   |   | 60,000 |   |   |   | 1 |   |   |   | 111 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expense      of employee options vesting        |   |   | -- |   |   |   | -- |   |   |   | 1,069 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expense      of director options vesting        |   |   | -- |   |   |   | -- |   |   |   | 42 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expense      of company warrants issued         |   |   | -- |   |   |   | -- |   |   |   | 8 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|  Common      stock buyback program               |   |   | (706,071 | ) |   |   | (7 | ) |   |   | (1,392 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|  Balance      September 30, 2009                 |   |   | 21,289,058 |   |   | $ | 213 |   |   | $ | 93,789 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                             |   | September      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                                                          |   |                        | (4,000 | ) |   | $ | 2.46 |   |   |   | (383,932 | ) |   | $ | 4.26 |   |
| Exercised                                                        |   |                        | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Outstanding      at September 30, 2009                           |   |                        | 3,713,098 |   |   | $ | 3.64 |   |   |   | 652,455 |   |   | $ | 2.95 |   |
| Exercisable      at September 30, 2009                           |   |                        | 2,616,437 |   |   | $ | 3.43 |   |   |   | 565,789 |   |   | $ | 3.01 |   |
|                                                             |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Remaining Contractual Life - Years         |   |                        |   |   |   |   | 5.83 |   |   |   |   |   |   |   | 3.76 |   |
|                                                             |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Aggregate      intrinsic value of options / warrants outstanding |   |                        |   |   |   | $ | 2,401,000 |   |   |   |   |   |   | $ | 622,000 |   |
|                                                             |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| (Unaudited)                                 |   |
|---------------------------------------------|--------|
| (Amounts      in thousands)                 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   | For      the three months |   |   | For      the nine months |   |
|                                        |   | ended      September 30, |   |   | ended      September 30, |   |
|                                        |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenues:                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                            |   | $ | 686 |   |   | $ | 564 |   |   | $ | 2,165 |   |   | $ | 995 |   |
| Oil      & gas                          |   |   | 593 |   |   |   | -- |   |   |   | 1,912 |   |   |   | -- |   |
| Other                                       |   |   | 5 |   |   |   | 5 |   |   |   | 14 |   |   |   | 52 |   |
| Total      revenues:                        |   |   | 1,284 |   |   |   | 569 |   |   |   | 4,091 |   |   |   | 1,047 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                            |   |   | 507 |   |   |   | 311 |   |   |   | 1,517 |   |   |   | 712 |   |
| Oil      and gas                            |   |   | 446 |   |   |   | -- |   |   |   | 1,936 |   |   |   | -- |   |
| Impairment      of oil & gas properties |   |   | 405 |   |   |   | -- |   |   |   | 1,468 |   |   |   | -- |   |
| Mineral      properties                     |   |   | 379 |   |   |   | 1,208 |   |   |   | 1,398 |   |   |   | 2,282 |   |
| Total      operating expenses:              |   |   | 1,737 |   |   |   | 1,519 |   |   |   | 6,319 |   |   |   | 2,994 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                            |   |   | -- |   |   |   | 132 |   |   |   | 19 |   |   |   | 206 |   |
| Oil      & gas                          |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Mineral      properties                     |   |   | 15 |   |   |   | -- |   |   |   | 45 |   |   |   | -- |   |
| Total      interest expense:                |   |   | 15 |   |   |   | 132 |   |   |   | 64 |   |   |   | 206 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      gain/(loss)                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                            |   | $ | 179 |   |   | $ | 121 |   |   | $ | 629 |   |   |   | 77 |   |
| Oil      & gas                          |   |   | (258 | ) |   |   | -- |   |   |   | (1,492 | ) |   |   | -- |   |
| Mineral      properties                     |   |   | (389 | ) |   |   | (1,203 | ) |   |   | (1,429 | ) |   |   | (2,230 | ) |
| Operating      (loss)                       |   |   | (468 | ) |   |   | (1,082 | ) |   |   | (2,292 | ) |   |   | (2,153 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      revenues and expenses:           |   |   | (2,140 | ) |   |   | (1,376 | ) |   |   | (5,971 | ) |   |   | (4,859 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      before discontinued             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations      and income taxes            |   | $ | (2,608 | ) |   | $ | (2,458 | ) |   | $ | (8,263 | ) |   | $ | (7,012 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      expense:                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                            |   | $ | 262 |   |   | $ | 184 |   |   | $ | 783 |   |   | $ | 332 |   |
| Oil      & gas                          |   |   | 475 |   |   |   | -- |   |   |   | 1,795 |   |   |   | -- |   |
| Mineral      properties                     |   |   | 13 |   |   |   | 9 |   |   |   | 41 |   |   |   | 27 |   |
| Corporate                                   |   |   | 98 |   |   |   | 88 |   |   |   | 299 |   |   |   | 329 |   |
| Total      depreciation expense             |   | $ | 848 |   |   | $ | 281 |   |   | $ | 2,918 |   |   | $ | 688 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |   |   |   |   |   |   |   | As      of |   |
|                                        |   |   |   |   |   |   |   |   |   | September      30, |   |   | December      31, |   |
|                                        |   |   |   |   |   |   |   |   |   |   | 2009 |   |   |   | 2008 |   |
| Assets      by segment                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real      estate                            |   |   |   |   |   |   |   |   |   | $ | 23,661 |   |   | $ | 30,980 |   |
| Oil      & Gas properties               |   |   |   |   |   |   |   |   |   |   | 14,077 |   |   |   | 8,523 |   |
| Mineral      properties                     |   |   |   |   |   |   |   |   |   |   | 22,993 |   |   |   | 24,927 |   |
| Corporate      assets                       |   |   |   |   |   |   |   |   |   |   | 55,152 |   |   |   | 78,201 |   |
| Total      assets                           |   |   |   |   |   |   |   |   |   | $ | 115,883 |   |   | $ | 142,631 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

----

| ·   | Operations      provided $2.9 million, Investing Activities provided $19.4 million and      Financing Activities consumed $19.1 million for a net increase in cash of      $3.2 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, $24.1 million and restricted      cash investments held as collateral for a construction loan, $4.7 million,      for a total of $28.8 million. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | Investing      activities consumed cash through the completion of the development of its      multifamily housing complex in Gillette, Wyoming, $91,000, the acquisition      and development of oil and gas properties, $9.1 million, investment in      Standard Steam Trust, $877,000 and the purchase of property and equipment,      $249,000. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

----

----

----

----

|                                   |   |                    |    |   |     |   |   |                                     |   |   |       |   |
|----------------------------------------|--------|-------------------------|---------|--------|----------|--------|--------|------------------------------------------|--------|--------|------------|--------|
|                                   |   |                    |    |   |     |   |   | 2009      Period Compared to 2008 Period |   |
|                                   |   | Three      Months Ended |    |   |     |   |   | %                                        |   |
|                                   |   | September      30,      |    |   | Increase |   |   | Increase                                 |   |
|                                   |   | 2009                    |    |   | 2008     |   |   | (Decrease)                               |   |   | (Decrease) |   |
| Production      volumes                |   |                    |    |   |     |   |   |                                     |   |   |       |   |
| Oil      and condensate (Bbls)         |   |                    | 3,351   |   |     |   | --     |                                     |   |   | 3,351      |   |   |   | 100 | % |
| Natural      gas (Mcf)                 |   |                    | 120,314 |   |     |   | --     |                                     |   |   | 120,314    |   |   |   | 100 | % |
| Natural      gas liquids (Bbls)        |   |                    | 3,504   |   |     |   | --     |                                     |   |   | 3,504      |   |   |   | 100 | % |
| Average      sales prices              |   |                    |    |   |     |   |   |                                     |   |   |       |   |   |   |   |   |
| Oil      and condensate (per Bbl)      |   | $                       | 42.67   |   |     | $      | --     |                                     |   | $      | 42.67      |   |   |   | 100 | % |
| Natural      gas (per Mcf)             |   |                    | 2.91    |   |     |   | --     |                                     |   |   | 2.91       |   |   |   | 100 | % |
| Natural      gas liquids (per Bbl)     |   |                    | 28.54   |   |     |   | --     |                                     |   |   | 28.54      |   |   |   | 100 | % |
| Operating      revenues (in thousands) |   |                    |    |   |     |   |   |                                     |   |   |       |   |   |   |   |   |
| Oil      and condensate                |   | $                       | 143     |   |     | $      | --     |                                     |   | $      | 143        |   |   |   | 100 | % |
| Natural      gas                       |   |                    | 350     |   |     |   | -      |                                     |   |   | 350        |   |   |   | 100 | % |
| Natural      gas liquids               |   |                    | 100     |   |     |   | -      |                                     |   |   | 100        |   |   |   | 100 | % |
| Total      operating revenue           |   |                    | 593     |   |     |   | -      |                                     |   |   | 593        |   |   |   | 100 | % |
| Lease      operating expense           |   |                    | 29      |   |     |   | -      |                                     |   |   | 29         |   |   |   | 100 | % |
| Impairment                             |   |                    | (405    | )      |     |   | -      |                                     |   |   | (405       | )      |   |   | 100 | % |
| Gain      before DD&A              |   |                    | 217     |   |     |   | -      |                                     |   |   | 217        |   |   |   | 100 | % |
| DD&A                               |   |                    | (475    | )      |     |   | -      |                                     |   |   | (475       | )      |   |   | 100 | % |
| Gain      (Loss)                       |   | $                       | (258    | )      |     | $      | -      |                                     |   | $      | (258       | )      |   |   | 100 | % |
|                                   |   |                    |    |   |     |   |   |                                     |   |   |       |   |   |   |   |   |

----

----

|                                   |   |                   |    |   |     |   |   | 2009      Period Compared to 2008 Period |   |
|----------------------------------------|--------|------------------------|---------|--------|----------|--------|--------|------------------------------------------|--------|
|                                   |   | Nine      Months Ended |    |   |     |   |   | %                                        |   |
|                                   |   | September      30,     |    |   | Increase |   |   | Increase                                 |   |
|                                   |   | 2009                   |    |   | 2008     |   |   | (Decrease)                               |   |   | (Decrease) |   |
| Production      volumes                |   |                   |    |   |     |   |   |                                     |   |   |   |   |
| Oil      and condensate (Bbls)         |   |                   | 10,451  |   |     |   | --     |                                     |   |   | 10,451 |   |   |   | 100 | % |
| Natural      gas (Mcf)                 |   |                   | 351,191 |   |     |   | --     |                                     |   |   | 351,191 |   |   |   | 100 | % |
| Natural      gas liquids (Bbls)        |   |                   | 4,507   |   |     |   | --     |                                     |   |   | 4,507 |   |   |   | 100 | % |
| Average      sales prices              |   |                   |    |   |     |   |   |                                     |   |   |   |   |   |   |   |   |
| Oil      and condensate (per Bbl)      |   | $                      | 45.16   |   |     | $      | --     |                                     |   | $ | 45.16 |   |   |   | 100 | % |
| Natural      gas (per Mcf)             |   |                   | 3.69    |   |     |   | --     |                                     |   |   | 3.69 |   |   |   | 100 | % |
| Natural      gas liquids (per Bbl)     |   |                   | 31.95   |   |     |   | --     |                                     |   |   | 31.95 |   |   |   | 100 | % |
| Operating      revenues (in thousands) |   |                   |    |   |     |   |   |                                     |   |   |   |   |   |   |   |   |
| Oil      and condensate                |   | $                      | 472     |   |     | $      | --     |                                     |   | $ | 472 |   |   |   | 100 | % |
| Natural      gas                       |   |                   | 1,296   |   |     |   | -      |                                     |   |   | 1,296 |   |   |   | 100 | % |
| Natural      Gas Liquids               |   |                   | 144     |   |     |   | -      |                                     |   |   | 144 |   |   |   | 100 | % |
| Total      operating revenue           |   |                   | 1,912   |   |     |   | -      |                                     |   |   | 1,912 |   |   |   | 100 | % |
| Lease      operating expense           |   |                   | (141    | )      |     |   | -      |                                     |   |   | (141 | ) |   |   | 100 | % |
| Impairment                             |   |                   | (1,468  | )      |     |   | -      |                                     |   |   | (1,468 | ) |   |   | 100 | % |
| Gain      before DD&A              |   |                   | 303     |   |     |   | -      |                                     |   |   | 303 |   |   |   | 100 | % |
| DD&A                               |   |                   | (1,795  | )      |     |   | -      |                                     |   |   | (1,795 | ) |   |   | 100 | % |
| Gain      (Loss)                       |   | $                      | (1,492  | )      |     | $      | -      |                                     |   | $ | (1,492 | ) |   |   | 100 | % |
|                                   |   |                   |    |   |     |   |   |                                     |   |   |   |   |   |   |   |   |

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| Contractual      Obligations           |   |
|----------------------------------------|--------|
| September      30, 2009                |
| (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 |   |   | 153 |   |   |   | -- |   |   |   | -- |   |   |   | 26 |   |   |   | 127 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Totals                           |   | $ | 1,153 |   |   | $ | 200 |   |   | $ | 600 |   |   | $ | 226 |   |   | $ | 127 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| 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 information is 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. |
|-----------------|--------------------------------------------------------------------------------------|

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|                        |   | Total      Number Of Shares Purchased |      |   | Average      Price Paid per Share |   |   | Total      Number of Shares Purchased as Part of Publically Announced      Plan |   |   | Maximum      Dollar Value of Shares that may be purchased under Plan |   |
|-----------------------------|--------|---------------------------------------|-----------|--------|-----------------------------------|--------|--------|---------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |
| December      31, 2008      |   |                                  | 2,388,129 |   |                              | $      | 2.76   |                                                                            |   |   | 2,388,129                                                            |   |   | $ | 1,398,226.64 |   |
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |   |   |   |   |
| January      1 to 31, 2009  |   |                                  | 242,700   |   |                              | $      | 1.98   |                                                                            |   |   | 2,630,829                                                            |   |   | $ | 917,105.19 |   |
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |   |   |   |   |
| February      1 to 28, 2009 |   |                                  | 148,100   |   |                              | $      | 1.88   |                                                                            |   |   | 2,778,929                                                            |   |   | $ | 638,294.86 |   |
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |   |   |   |   |
| March      1 to 31, 2009    |   |                                  | 138,500   |   |                              | $      | 1.79   |                                                                            |   |   | 2,917,429                                                            |   |   | $ | 390,332.70 |   |
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |   |   |   |   |
| April      1 to 30, 2009    |   |                                  | 141,400   |   |                              | $      | 2.20   |                                                                            |   |   | 3,058,829                                                            |   |   | $ | 78,788.67 |   |
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |   |   |   |   |
| May      1 to 31, 2009      |   |                                  | 35,371    |   |                              | $      | 2.23   |                                                                            |   |   | 3,094,200                                                            |   |   | $ | - |   |
|                        |   |                                  |      |   |                              |   |   |                                                                            |   |   |                                                                 |   |   |   |   |   |

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|   | (a)    | Exhibits |                                                                                                                                                                                                                            |
|--------|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |     |                                                                                                                                                                                                                            |
|   |   | 3.1      | Restated      Articles of Incorporation as Amended (incorporated by reference from      exhibit 4.1 to the Company’s Form S-3 filed October 21,    2009)                                                                  |
|   |   | 3.2      | Bylaws,      as amended through April 17, 2009 (incorporated by reference from exhibit      3.2 to the Company’s Form 8-K filed April 21, 2009)                                                                           |
|   |   | 10.1     | Drilling      Participation Agreement with Brigham Exploration Company dated August 24,      2009 (incorporated by reference from exhibit 10.1 to the Report on Form      8-K filed August 28, 2009)                            |
|   |   | 10.2     | Employment      Agreement by and between Keith G. Larsen and the Company dated as of April      20, 2009 (incorporated by reference form exhibit 10.1 to the Company’s      Report on Form 8-K filed April 21, 2009)      |
|   |   | 10.3     | Employment      Agreement by and between Mark J. Larsen and the Company dated as of April      20, 2009 (incorporated by reference form exhibit 10.2 to the Company’s      Report on Form 8-K filed April 21, 2009)       |
|   |   | 10.4     | Employment      Agreement by and between R. Scott Lorimer and the Company dated as of      April 20, 2009 (incorporated by reference form exhibit 10.3 to the      Company’s Report on Form 8-K filed April 21, 2009)     |
|   |   | 10.5     | Employment      Agreement by and between Steven R. Youngbauer and the Company dated as of      April 20, 2009 (incorporated by reference form exhibit 10.4 to the      Company’s Report on Form 8-K filed April 21, 2009) |
|   |   | 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 of2002                                                                               |

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|                        |   | U.S.      ENERGY CORP. |
|-----------------------------|--------|------------------------|
|                        |   | (Registrant)           |
|                        |   |                   |
|                        |   |                   |
|                        |   |                   |
| Date:      November 6, 2009 |   | By:                    | /s/      Keith G. Larsen |
|                        |   |                   | KEITH      G. LARSEN, |
|                        |   |                   | Chairman      and CEO |
|                        |   |                   |   |
|                        |   |                   |   |
|                        |   |                   |   |
|                        |   |                   |   |
| Date:      November 6, 2009 |   | By:                    | /s/      Robert Scott Lorimer |
|                        |   |                   | ROBERT      SCOTT LORIMER |
|                        |   |                   | Principal      Financial Officer and |
|                        |   |                   | Chief      Accounting Officer |

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