exhibit10_1.htm


    
      

    

     

     

    

      877
North 8th West, Riverton, WY  82501 USA, Ph:  (307) 856-9271,
Fx:  (307) 857-3050, www.usnrg.com

      


      


      


      For
Immediate Release

      


      U.S.
ENERGY CORP. UPDATES DRILLING PROGRAM WITH RIDGELAND WYOMING INC.

      


      RIVERTON, Wyoming – February 3,
2009 – U.S. Energy Corp. (NASDAQ Capital Market: “USEG”) (“USE” or the
“Company”), a natural resources exploration and development company with
interests in molybdenum, oil and gas, geothermal, and real estate assets, today
provided an update on the first well drilled with Ridgeland Wyoming, Inc.
("Ridgeland"), a private Utah-based oil and gas company.  The well was
drilled to a total depth of approximately 6,000 feet and on Friday January 30,
2009 was determined to be non-productive and has subsequently been plugged and
abandoned.

      


      “U.S.
Energy continues to examine a range of opportunities across the United States to
grow our oil and gas portfolio, both through the drill bit and the acquisition
of existing production, focusing on managing risk and maximizing returns,”
stated Keith Larsen, CEO of U.S. Energy Corp.  “We have moved quickly
to advance projects in the early part of the year, and although this well was
deemed to be non-productive, we remain committed to growing our production to
approximately 7,000 MCFE/D as we exit 2009.”

      


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            Press
Release

            February
3, 2009

            Page 2
of 2

            


          

        

      


      About
U.S. Energy Corp.

      


      U.S.
Energy Corp. is a diversified natural resource company with interests in
molybdenum, oil and gas, geothermal and real estate assets.  The
Company is headquartered in Riverton, Wyoming, and its common stock is listed on
The NASDAQ Capital Market under the symbol “USEG”.

       

      Note
Regarding Mcfe

       

       

      In this
press release, Mcfes are derived by converting oil to gas in the ratio of one
barrel of oil to six thousand cubic feet of gas (1 bbl:6 Mcf).  One
thousand cubic feet of gas equivalent ("Mcfe") amounts may be misleading,
particularly if used in isolation.  A Mcfe conversion ratio of 1 bbl
of oil to 6 Mcf of natural gas is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value of
equivalency at the well head.

       

      * * * *
*

      


      Disclosure
Regarding Mineral Resources Under SEC and Canadian Regulations; and
Forward-Looking Statements

      


      The
Company owns or may come to own stock in companies which are traded on foreign
exchanges, and may have agreements with some of these companies to acquire
and/or develop the Company’s mineral properties.  An example is Sutter
Gold Mining Inc.  These other companies are subject to the reporting
requirements of other jurisdictions.

      


      United
States residents are cautioned that some of the information available about our
mineral properties, which is reported by the other companies in foreign
jurisdictions, may be materially different from what the Company is permitted to
disclose in the United States.

      


      This
news release includes statements which may constitute “forward-looking”
statements, usually containing the words “believe,” “estimate,” “project,”
“expect," or similar expressions.  These statements are made pursuant
to the safe harbor provision of the Private Securities Litigation Reform Act of
1995.  Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements.  Factors that would cause or contribute to
such differences include, but are not limited to, future trends in mineral
prices, the availability of capital, competitive factors, and other
risks.  By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revision or changes
after the date of this release.

      


      For
further information on the differences between the reporting limitations of the
United States, compared to reports filed in foreign jurisdictions, and also
concerning forward-looking statements, please see the Company’s Form 10-K
(“Disclosure Regarding Forward-Looking Statements”; “Disclosure Regarding
Mineral Resources under SEC and Canadian Regulation”; and “Risk Factors”); and
similar disclosures in the Company’s Forms 10-Q.

      


      *
* * * *

      


      For
further information, please contact:

      


      Reggie
Larsen

      Director
of Investor Relations

      U.S.
Energy Corp.

      1 800 776
9271

      Reggie@usnrg.com

      


      Nick
Hurst

      The
Equicom Group

      Investor
Relations

      403 538
4845

      nhurst@equicomgroup.com