US Energy Corp. (USEG) is a diversified natural resource company with diversified interests in oil and gas, molybdenum, geothermal, uranium and real estate assets.
USEG is focused on the development of natural resource assets - acquiring properties on favorable terms, adding value through the application of its expertise in the natural resources sector, and seeking joint venture partners to assist in the development of its projects. The company's main emphasis is in the natural resources sector, including oil and gas and renewable energy.
Projects includes the Mount Emmons Project, mining operation of molybdenum in Crested Butte, Colorado oil and gas drilling projects in the Gulf Coast, Southern Louisiana, East Texas, and Northeastern Wyoming geothermal-powered electrical generation plants and prospects located in seven states including Nevada, Idaho, and Utah and the construction of a multi-family housing project in Wyoming.
USEG Investor Highlights
In August 2009, US Energy Corp. entered into a Drilling Participation Agreement with Brigham Exploration Company to earn working interests in up to fifteen 1,280 acre spacing units in Brigham's Rough Rider project area located in Williams and McKenzie Counties of North Dakota. The terms of the DPA call for the drilling of up to 15 initial Bakken wells in 15 separate 1,280 acre spacing units. The ultimate number of wells to be drilled in the units could reach 90.
Recently announced the initial production rate from its State 36-1 #1H well which was recently completed with Brigham Exploration Company, produced approximately 3,236 barrels of oil and 3.42 MMCF of natural gas per day or 3,807 BOE/D during an early 24-hour flow back period. U.S. Energy's initial working interest in this well is approximately 29% (~23% net revenue interest). Oil and gas sales (of 1.5 MMCFD due to line constraints) from this well have commenced.
Announced the initial production rate from its Williston 25-36 #1H well drilling program with Brigham Exploration Company, produced approximately 2,769 barrels of oil and 3.75 MMCF of natural gas per day or 3,394 BOE/D during an early 24 hour flow back period. U.S. Energy's initial working interest in this well is approximately 65% (~51% net revenue interest).
Keith Larsen, CEO of U.S. Energy Corp. stated "We are extremely delighted to see our first 3,000 plus BOE/D initial production rate well, and we continue to be impressed with Brigham's management and operations, I look forward to a marked increase in our revenue in 2010".
On August 19, 2008 USEG entered into a definitive Exploration, Development and Mine Operating Agreement for its Mount Emmons molybdenum property, located in Gunnison County, Colorado, with Thompson Creek Metals Company Inc. (TSX: TCM) (NYSE: TC), one of the world's largest publicly traded, pure molybdenum producers. Under the terms of the agreement, which are valued at up to $400 million, Thompson Creek has the right to earn up to a 75% interest in the project. The Mount Emmons Project is a proposed mining operation. This "world class" deposit is believed to be one of the largest and purest molybdenum deposits in the world.
USEG has working interest in wells in Texas, Louisiana and Mississippi.
USEG entered into an Exploration and Area of Mutual Interest Agreement with PetroQuest Energy, which relates to three prospect areas in the Gulf Coast region of the United States.
U.S. Energy Corp. has invested $4.3 million in Standard Steam Trust LLC, a private geothermal exploration and development company based in Denver, Colorado. Current capitalization of SST (with other partners) is $17.3 million (25% USEG), which now includes approximately 95,500 acres of BLM, state and fee leases in eight prospect areas in three states.
On April 30, 2007, USEG completed a sale of its uranium assets to subsidiaries of Uranium One for approximately $100,000,000 in stock and cash. If certain conditions are met by Uranium One, USEG could be entitled to receive additional consideration upwards of thirty million from the sale.
USEG also holds a 4% net profits interest on Rio Tinto's Jackpot uranium property located on Green Mountain in Wyoming.
USEG constructed and operates a 216-unit multi-family housing project in Gillette, Wyoming where tight housing market conditions exist due to strong employment in the local energy and mining industries.
Imperial Sugar Company (IPSU) is one of the largest processors and marketers of refined sugar in the United States to food manufacturers, retail grocers and foodservice distributors. Imperial engages in the refining, packaging, and national distribution of granulated, powdered, liquid, and brown sugars under the Dixie Crystals, Imperial, and Holly brand names, as well as under private labels.
The company, through its joint venture, also markets organic cane sugar, agave syrup, honey, estandar, and other specialty sugars in Mexico and Canada.
IPSU has sales of over $1 billion and a completely new management team from the board of directors down to most on the VP level in the last three years.
Imperial Sugar products have been available to Texans for over 100 years. The Dixie Crystals brand has been supplying the same great product to the southeast since 1917.
IPSU makes an interesting domestic play in sugar, the Company has teamed with Sugar Growers and Refiners Inc., and Cargill to form a joint venture that will lead to the construction of a new sugar refinery in Gramercy, LA, when completed it will be the largest sugar refinery in the United States.
IPSU Investor Highlights
Imperial Sugar Company, Sugar Growers and Refiners Inc., and Cargill announced the completion of a joint venture agreement that will lead to the construction of a new sugar refinery in Gramercy, LA. Each Company will have a one-third interest and when completed it will be the largest sugar refinery in the United States.
The Port Wentworth, Georgia refinery continues to ramp up production with the installation of new lines and is expected to be fully operational in the second quarter of fiscal 2010.
IPSU as one of the largest refiners of cane sugar produces a wide assortment of industrial products for sale throughout the United States. These products include both bulk and liquid sugars for the industrial community, along with a wide range of packaged sugars.
Announced that it expects to recognize pre-tax gains of approximately $278 million in its first fiscal quarter ending December 31, 2009, as a result of a property insurance claim for the February 2008 industrial accident at its Port Wentworth, Georgia facility. A final $45 million payment on the claim is expected to be received in early January.
New product launches in 2009 included Redi-Measure brown sugar ¼ cup packets, Bakers Supreme natural ingredient frosting mixes and ready-to-use ice tea liquid sweetener.
Declared a regular quarterly cash dividend of $0.02 per common share.
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