U.S. Energy Corp. (USEG) disclosed on Friday its agreement to sell specific assets situated in East Texas for $6.825 million in cash to a private purchaser. The transaction, anticipated to be finalized on or before December 31, is slated to finance the ongoing development of USEG's industrial gas project in Montana.
This divestiture is strategic for USEG, as it aims to streamline operations and achieve significant cost savings by withdrawing from a non-core geographical area.
The company intends to dispose of the majority of its holdings in East Texas, particularly in Anderson, Chambers, Henderson, and Liberty Counties.
These East Texas assets encompass a total of 122 wells, primarily operated properties, which yielded approximately 1.1 million cubic feet of natural gas and 168 barrels of oil daily during the quarter ending September 30.
