HOUSTON, October 14, 2021 – Crain Caton & James represented Synergy Offshore LLC in the sale of certain oil and gas assets to U.S. Energy Corp. (NASDAQCM: USEG).  Additional sellers include Lubbock Energy Partners LLC, and certain entities controlled by Sage Road Capital, LLC.

Under the terms of the agreements, U.S. Energy Corp. (“U.S. Energy”) will issue 19,905,736 shares of common stock, pay $1.25 million of cash, and assume $3.3 million of indebtedness from the Sellers, equating to a total consideration of $99.5 million using U.S. Energy’s closing stock price on October 1, 2021. Upon completion of the Transactions, the Sellers will own approximately 80.8% and existing U.S. Energy shareholders will own approximately 19.2% of the Company’s outstanding common stock.

The Transactions are expected to close in the 4th quarter of 2021 and are subject to customary closing conditions and regulatory approvals, including the approval of U.S. Energy stockholders.  Mr. Duane H. King, Chief Executive Officer of Synergy Offshore LLC, will join the board of U.S. Energy Corp.

“These transformative transactions show that we can replicate our opportunistic acquisition strategy on a larger scale. The Transactions provide size and scale, add free cash flow, bolster our management team and Board, and enhance our access to and cost of capital, all while remaining in a zero net debt position,” said Ryan Smith, Chief Executive Officer of U.S. Energy.

Synergy Offshore LLC provides gas and oil exploration services. It also offers exploitation, acquisition, development, and production of crude oil and natural gas reserves. The company was founded by Duane H. King in 2010 and is headquartered in Houston, TX.

U.S. Energy Corp. is independent energy company focused on the acquisition and development of oil and gas producing properties in the United States. Our business is currently focused on targeting mature, low decline assets with existing infrastructure that allows the Company to maximize return on capital in a sustainable and efficient manner.

The Crain Caton & James team includes transactions, business and oil and gas- attorneys Adrienne Randle Bond and Caroline C. Pace.

For more details on the transaction, see U.S. Energy Corp Enters Definitive Agreement Press Release.