Document:

exhibit10_1.htm

    
      

    

     

     

    
                  877 N. 8th W., 
Riverton, Wyoming  82501            307-856-9271        FAX
307-857-3050

      

      

      

      For
Immediate Release:

      

       

      U.S.
ENERGY CORP. CONFERENCE CALL TO DISCUSS FIRST QUARTER 2008 OPERATIONAL
RESULTS

      

      RIVERTON, Wyoming (May 12th,
2008) – U.S. Energy Corp. (“USE”; NASDAQ Capital Market: USEG) today
announced it has released its financial results for the first quarter ended
March 31st,
2008.  The company has also scheduled a conference call to update
shareholders and analysts on the company’s first quarter operational progress
and outlook for 2008.

      

      

      First Quarter Operations
Update Conference Call

      

      

      When:  Thursday, May
15th
at 12:00 PM ET (10:00 AM Mountain)

      

      Dial-In Number: (866) 257-9956
(within US and Canada), (706) 645-9218 (International)

      

      Replay
Number:  (800) 642-1687 (within US and Canada), (706) 645-9291
(International).  ID Number #47059042.  The replay will be
available starting at approximately 5:00 PM ET on May 15th and
will be available for thirty days through 11:59 PM ET on Sunday, June 15th.

      

      About
U.S. Energy Corp.

      U.S.
Energy Corp. is a diversified natural resource company with significant
molybdenum, gold and uranium projects. For more information on U.S. Energy
Corp., visit its website at http://www.usnrg.com.

      

      

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            Press
Release

            May
12, 2008

            Page
2 of 2

          

        

      

      
 

      ABOUT
U.S. ENERGY CORP.

      

      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.  Examples of these
other companies are Sutter Gold Mining Inc. and Kobex Resources
Ltd.  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:

      Keith
G. Larsen, CEO or Mark J. Larsen, President

      U.S.
Energy Corp. (307) 856-9271exhibit10_2.htm

    
      

    

     

     

    
       

                  877 N. 8th W.,
Riverton, Wyoming  82501            307-856-9271            FAX
307-857-3050

      

      For
Immediate Release

      

      U.S.
ENERGY CORP. PROVIDES OPERATIONS UPDATE

      

      RIVERTON,
Wyoming – May 12, 2008 -U.S. Energy Corp. (NASDAQ Capital Market: “USEG”) (“USE”
or the “Company”) is pleased to provide the following operations update
involving its various business segments.

      

      Lucky
Jack Molybdenum Project

      

      On March
31, 2008, Kobex Resources Ltd. exited its option agreement involving the Lucky
Jack molybdenum project at Mt. Emmons near Crested Butte,
Colorado.  Kobex cited uncertainty in permitting and the overall
regulatory environment as reasons for its action, after investing $10 million in
the project over the course of a year.  The investment of these funds
by Kobex, along with a $5 million budget from USE for the rest of 2008, will
maintain strong forward momentum at the project.  This project has
“world-class” potential, and USE stands undeterred in its resolve to advance,
permit and develop Lucky Jack into a premier primary molybdenum mine that the
United States can be proud of.  Once again, USE owns 100% of the
project, and the Company is confident in its ability to identify and bring on
board a highly qualified partner in the future.  USE has been pleased
by the levels of initial interest shown by prospective joint venture partners
since Kobex announced its withdrawal from the project.

      

      In
addition to the numerous technical studies currently underway at Mt. Emmons, USE
recently commissioned Samuel Engineering, Inc. to complete an engineering study
that should be finalized by September.  This study will provide
pre-feasibility figures and engineered costs for key operational aspects of the
project, including mining methodology, milling procedures, tailings disposal and
reservoir placement.  The study will provide key components that will
be used in the filing of a Plan of Operations with the U.S. Forest Service as
early as the fourth quarter of 2008 or early in 2009.

      

      Sutter
Gold Mining Inc.

      

      Following
the business model of advancing projects to a development stage and then seeking
a strategic or financial partner, USE has established specific internal goals
for its 54%-owned Sutter Gold Mining, Inc. (SGMI) subsidiary in
2008.  With gold selling near $900 per ounce, this project is
well-positioned for advancement to the development stage.  USE
believes it is time to monetize its long-held position in SGMI.  This
might be accomplished most effectively by selling majority control of the
company (while maintaining a minority stake) to a qualified, experienced
developer that can bring the mine into production, rather than waiting for SGMI
management to secure its own joint venture partner.  USE believes that
SGMI’s potential can be realized more efficiently 

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

          
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      under the
majority ownership of a developer with extensive experience in the gold mining
industry.  Alternatively, USE could participate in a company-wide
transaction wherein a qualified developer acquires all SGMI shares or assets for
cash and/or developer stock issued to USE and minority
shareholders.  USE believes such a transaction is possible within the
next twelve months.

      

      Oil
and Gas

      

      The
Company is also pleased to announce that it plans to commence drilling its first
Gulf Coast well with PetroQuest Energy, Inc. (NYSE:  PQ) by mid-June
2008.  As identified on PetroQuest’s website, the first well to be
drilled, known as the The Bluffs Prospect, is an 8 BCFE target.  We
also expect to follow the drilling of The Bluffs Prospect with both the St.
Andrews and The Highlands Prospects in the third Quarter of
2008.  These prospects have both been identified as 12 BCFE targets by
PetroQuest.  U.S. Energy has a 20% working interest in each of these
wells.

      

      PetroQuest
has been very prudent in its lease acquisition program and has identified
several prospects within a very large area of mutual interest in a highly
prospective region of the Gulf Coast.  While there are no guarantees
in oil and gas exploration, USE is confident that it has chosen a proven partner
that can identify, drill and produce wells with the potential to generate
significant cash flow for USE for many years to come.  We will provide
further details as our drilling program advances.

      

      Additionally,
USE continues to evaluate opportunities with other qualified partners in the oil
and gas industry that have proven track records of success.  Our near
term objective remains to allocate a meaningful portion of our cash resources to
a sector of the natural resource industry that should benefit from robust energy
prices that are likely to prevail over the long term.

      

      Real
Estate

      

      In light
of Kobex’s decision to withdraw from the Lucky Jack molybdenum project and USE’s
subsequent dedication of additional corporate resources to the development of
this project, the Company has decided to complete the Gillette, Wyoming
multi-family housing project and discontinue further real estate
development.  At the date of this writing, USE is both on budget and
ahead of schedule in Gillette, having completed four 24-plexes that are fully
occupied.  All nine 24-plexes should be completed and occupied by
September 30, 2008, a full four months ahead of schedule.  Further,
the entire project is over 95% committed for occupancy and should be generating
$240,000 per month in revenue to USE by October 2008.   USE
expects to have permanent financing in place by then, and the Company is
exploring ways to monetize this investment before the end of
2008.  USE has received an appraisal valuing the project at
approximately $29 million upon completion, compared with a total project cost
that should not exceed $26 million.  USE has invested approximately $7
million of equity capital into the project and would realize a very impressive
return on investment if the development can be sold at a price 

       

       

      
        
           

        

        
           

          
            

          

        

        
           

          
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      that
approximates its appraised value.  After the divestiture, USE will be
engaged solely in the energy and natural resources sector.

      

      Renewable
Energy

      

      USE has
launched a new strategic initiative to investigate the development and
production of energy from renewable energy sources.  The new
initiative will focus initially on advanced biomass, solar and wind power
technologies.

      

      Company
officials see tremendous opportunity and potential with renewable and
environmentally clean energy projects.  The Company has stressed
environmental stewardship in all of its activities by adopting environmentally
responsible practices and hopes to expand these practices into the renewable
energy arena.

      

      Initial
plans call for working with industry experts, government and educational
entities, and the Company hopes to announce project plans later this
year.

      

      Management
Comments

      

      “USE’s
success last year was made possible, to a large degree, by the Company’s
long-term strategy of diversification within the natural resources industry, and
this philosophy will continue to guide management in the future,” stated Keith
Larsen, Chief Executive Officer of the Company.  “Today, a cash-rich
balance sheet presents both challenges and opportunities to USE, and it is the
responsibility of management to exercise prudence when evaluating strategic
opportunities that can enhance future shareholder value.  As a
publicly traded company, we believe our stock price has suffered from confusion
among some investors regarding management’s strategic approach to the creation
of value for our shareholders.”

      

      “The
secret to USE’s success, as evidenced in last year’s sale of most of our uranium
assets for over $100 million (and $40 million in future payments), involves
identifying ‘diamonds in the rough,’ often during periods of market
inefficiency, then having the ability, foresight and patience to enhance to
value of such assets to prospective buyers or joint venture
partners.  We have accomplished this with our uranium and coalbed
methane assets through the understanding of markets, timing and hard
work.  Our goal is to replicate such success with other commodities,
such as molybdenum and renewable resources.”

      

      “Continued
diversification, prudent investment of cash and U.S. Treasury Bills, which
exceed $73 million at March 31, 2008, and a primary focus on the Lucky Jack
Project will define our emphasis for the year 2008, and USE fully expects these
efforts to lead to greater value for our shareholders,” commented Mark Larsen,
President of U.S. Energy Corp.

       

       

      
        
           

        

        
           

          
            

          

        

        
           

          
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      “While we
will continue to seek out ‘ground floor’ natural resource opportunities that may
require multi-year commitments of capital and other corporate resources in
pursuit of large investment returns, the risks associated with such a strategy
will be balanced through partnerships and the devotion of a portion of our cash
to what we believe will prove to be lower- to mid-risk opportunities in an
effort to generate recurring revenues, including as oil and gas development and
renewable energy projects,” he concluded.

      

      *
* * * *

      

      ABOUT
U.S. ENERGY CORP.

      

      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.  Examples of these
other companies are Sutter Gold Mining Inc. and Kobex Resources
Ltd.  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:

      Keith
G. Larsen, CEO or Mark J. Larsen, President

      U.S.
Energy Corp. (307) 856-9271

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