US Energy to sell majority of oil, natural gas assets in East Texas

US Energy Corp., Houston, has agreed to sell most of its oil and natural gas assets in East Texas to a 84 Resources Holdings LLC for $6.825 million.

In a Dec. 12 report to the US Securities and Exchange Commission, US Energy said the company and its wholly-owned subsidiary, New Horizon Resources LLC, entered into a purchase and sale agreement with 84 Resources.

Pursuant to that agreement, the report said, US Energy agreed to sell 84 Resources primarily operated oil and gas producing properties, including all oil and gas leases, 122 wells, surface rights, rights of ways, personal property, permits, contracts, records and facilities, associated therewith located primarily in Liberty and Henderson Counties, Tex. 

In a Dec. 13 press release in which US Energy Corp. did not name the buyer, the operator said the East Texas assets to be sold lie in Anderson, Chambers, Henderson, and Liberty Counties, and produced about 1.1 MMcfd of natural gas and 168 b/d of oil in this year’s third quarter. 

The deal, subject to customary closing conditions, is expected to close on or before Dec. 31, 2024.

During the 9 months ended Sept. 30, 2024, US Energy closed several divestment deals of its oil and gas properties for total net proceeds of $5.9 million. The sales included a total of 245 wells in Karnes County and Archer County, Tex., and Lea County, NM.  

Subsequently,  on Oct. 31, 2024, US Energy closed on the divestment of oil and gas properties in Pratt County and Sumner County, Kan., and Kay County, Okla., for net proceeds of $1.2 million.