U.S. Energy Corp. Announces Major Helium Discovery from Initial Development Program
U.S. Energy Corp (NASDAQ: USEG) announced a significant helium discovery from its initial well drilling operations in Montana. Independent laboratory results confirmed high-quality, non-hydrocarbon-based helium with concentrations up to 1.5%. The discovery was made in multiple zones, with highest concentrations in nitrogen-based formations and additional findings in CO2-based formations. The company plans to conduct extended flow tests in Q4 2024 and begin drilling multiple additional wells in Q1 2025. The project was completed under budget, and the company expects to book proved reserves in its year-end 2024 report.
U.S. Energy Corp (NASDAQ: USEG) ha annunciato una significativa scoperta di elio dalle sue operazioni di trivellazione iniziali in Montana. I risultati di laboratori indipendenti hanno confermato la presenza di elio di alta qualità, non a base di idrocarburi, con concentrazioni fino a 1.5%. La scoperta è stata effettuata in più zone, con le concentrazioni più elevate nelle formazioni a base di azoto e ulteriori scoperte in formazioni a base di CO2. L'azienda prevede di effettuare test di flusso prolungati nel Q4 2024 e di iniziare a trivellare ulteriori pozzi nel Q1 2025. Il progetto è stato completato con un costo inferiore al budget previsto e l'azienda si aspetta di registrare riserve provate nel suo rapporto di fine anno 2024.
U.S. Energy Corp (NASDAQ: USEG) anunció un importante descubrimiento de helio a partir de sus operaciones de perforación iniciales en Montana. Los resultados de laboratorios independientes confirmaron la calidad del helio, no basado en hidrocarburos, con concentraciones de hasta 1.5%. El descubrimiento se realizó en múltiples zonas, con las concentraciones más altas en formaciones basadas en nitrógeno y hallazgos adicionales en formaciones basadas en CO2. La empresa planea realizar pruebas de flujo extendidas en el cuarto trimestre de 2024 y comenzar a perforar varios pozos adicionales en el primer trimestre de 2025. El proyecto se completó por debajo del presupuesto y la empresa espera registrar reservas comprobadas en su informe de fin de año 2024.
U.S. Energy Corp (NASDAQ: USEG)는 몬태나에서의 초기 우물 시추 작업을 통해 중요한 헬륨 발견을 발표했습니다. 독립적인 실험실 결과는 탄화수소가 없는 고품질 헬륨이 1.5%까지의 농도로 확인되었다고 알렸습니다. 이 발견은 여러 지역에서 이루어졌으며, 질소 기반 지층에서 가장 높은 농도가 검출되었고, CO2 기반 지층에서도 추가 발견이 있었습니다. 이 회사는 2024년 4분기 동안 확대된 흐름 테스트를 수행하고 2025년 1분기에는 여러 추가 우물 시추를 시작할 계획입니다. 이 프로젝트는 예산보다 적은 비용으로 완료되었으며, 회사는 2024년 연말 보고서에 증명된 매장량을 기재할 것으로 예상하고 있습니다.
U.S. Energy Corp (NASDAQ: USEG) a annoncé une découverte significative d'hélium lors de ses opérations de forage initiales dans le Montana. Les résultats de laboratoires indépendants ont confirmé la présence d'hélium de haute qualité, sans hydrocarbures, avec des concentrations allant jusqu'à 1.5%. La découverte a été faite dans plusieurs zones, avec les concentrations les plus élevées dans des formations à base d'azote et des découvertes supplémentaires dans des formations à base de CO2. La société prévoit de réaliser des tests d'écoulement prolongés au quatrième trimestre 2024 et de commencer à percer plusieurs autres puits au premier trimestre 2025. Le projet a été réalisé en deçà du budget, et la société s'attend à enregistrer des réserves prouvées dans son rapport de fin d'année 2024.
U.S. Energy Corp (NASDAQ: USEG) hat eine bedeutende Heliumentdeckung aus ihren ersten Bohrungen in Montana bekannt gegeben. Unabhängige Laborergebnisse bestätigten hochwertiges, nicht auf Kohlenwasserstoffen basierendes Helium mit Konzentrationen von bis zu 1.5%. Die Entdeckung wurde in mehreren Zonen gemacht, mit den höchsten Konzentrationen in Stickstoff-basierten Formationen und weiteren Funden in CO2-basierten Formationen. Das Unternehmen plant, im vierten Quartal 2024 erweiterte Flusstests durchzuführen und im ersten Quartal 2025 mit dem Bohren weiterer Bohrlöcher zu beginnen. Das Projekt wurde unter dem Budget abgeschlossen, und das Unternehmen erwartet, im Jahresbericht 2024 nachgewiesene Reserven zu buchen.
- Discovery of high-quality helium with 1.5% concentration
- Drilling operations completed under budget
- Debt-free position and strong balance sheet
- Multiple helium-bearing zones identified
- Potential for future carbon sequestration initiatives
- None.
Insights
This helium discovery marks a significant strategic pivot for USEG, transitioning from traditional energy to industrial gases. The 1.5% helium concentration is notably high for natural deposits, positioning the company favorably in the growing helium market. The discovery's value is amplified by its location in non-hydrocarbon formations, which typically means lower extraction costs and cleaner production.
The dual potential for helium production and carbon sequestration creates multiple revenue streams. The company's debt-free status and existing cash flow provide financial flexibility for development without immediate capital raising needs. The timing is particularly advantageous given global helium supply constraints and increasing demand from semiconductor manufacturing, MRI machines and other high-tech applications.
The planned multi-well development program in 2025 could significantly impact USEG's valuation, especially once proved reserves are booked in the 2024 year-end report. The Montana location offers strategic advantages for North American distribution, potentially commanding premium pricing in the current supply-constrained market.
The non-hydrocarbon nature of this helium discovery aligns perfectly with the growing ESG demands in the industrial gas sector. The CO2-based formations present a unique opportunity for carbon sequestration, potentially positioning USEG as a regional carbon storage hub. This dual-purpose capability could attract environmental credits and partnerships with companies seeking carbon offset solutions.
The project's environmental profile is particularly attractive as it offers clean helium production without the traditional hydrocarbon extraction complications. This positions USEG to potentially secure premium pricing from environmentally conscious tech sector buyers who require helium for manufacturing processes. The company's strategy to develop a regional carbon sequestration hub could also benefit from potential government incentives and carbon credit markets.
HOUSTON, Oct. 31, 2024 (GLOBE NEWSWIRE) -- U.S. Energy Corporation (NASDAQ: USEG, “U.S. Energy” or the “Company”) a growth-focused company engaged in the development and operation of high-quality producing energy and industrial gas assets, today announced a series of key operational updates.
HIGHLIGHTS
- Successfully completed drilling operations on the Company’s initial well.
- Independent laboratory results confirm high-quality, non-hydrocarbon-based helium discovery with concentrations up to approximately
1.5% . - Results validate and enhance the economic potential of the Company’s asset.
- Sets the stage for the next steps in the asset’s broader development program.
MANAGEMENT COMMENTARY
“I am pleased to report a significant milestone for U.S. Energy with this major helium discovery as part of our industrial gas development strategy around our newly acquired assets in Montana,” said Ryan Smith, U.S. Energy’s Chief Executive Officer. “The independent analysis not only validates our geologic model and the high potential of the asset but also enables us to move forward confidently toward full-cycle program completion, expected in 2025. The expertise of our newly expanded operational team, with extensive experience in similar projects, was evident throughout, resulting in efficient, on-target, and under budget drilling operations. With our debt-free position, strong balance sheet, robust asset base, and solid cash flow from legacy operations, U.S. Energy has the financial flexibility to accelerate our program’s development in an economically sound way while enhancing shareholder value.”
OPERATIONAL SUMMARY
Following the acquisition of its initial industrial gas assets in late June 2024, U.S. Energy began drilling its first well in early October 2024, completing operations within three weeks. Helium was identified in multiple zones, with the highest concentrations found in nitrogen-based, non-hydrocarbon formations. Additional helium was also discovered in non-hydrocarbon, CO2-based formations, positioning U.S. Energy to leverage these assets in future carbon sequestration initiatives, ultimately evolving into a regional carbon sequestration hub. Commercially, U.S. Energy’s helium resources—sourced from non-hydrocarbon formations—provide a high-value, sustainable supply solution to North America, aligning with growing demand for lower-emission, environmentally conscious alternatives.
In the fourth quarter of 2024, U.S. Energy will conduct extended flow tests across multiple zones to deepen its analysis and further validate the economic viability of this multi-zone resource. Plans are in place to drill multiple additional wells, with development set to begin in the first quarter of 2025.
U.S. Energy anticipates booking proved reserves from this initial development program in its year-end 2024 reserve report.
ABOUT U.S. ENERGY CORP.
We are a growth company focused on the development and operation of high-quality energy and industrial gas assets in the United States through low-risk development while maintaining an attractive shareholder returns program. We are committed to being a leader in reducing our carbon footprint in the areas in which we operate. More information about U.S. Energy Corp. can be found at www.usnrg.com.
INVESTOR RELATIONS CONTACT
Mason McGuire
Vice President – Finance and Strategy
IR@usnrg.com
(303) 993-3200
www.usnrg.com
FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.
Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation: (1) the ability of the Company to grow and manage growth profitably and retain its key employees; (2) risks associated with the integration of recently acquired assets; (3) the ability of the Company to retain and hire key personnel; (4) the business, economic and political conditions in the markets in which the Company operates; (5) the volatility of oil and natural gas prices; (6) risks relating to the future price of oil, natural gas and NGLs; (7) risks related to changes in the legal and regulatory environment governing the oil and gas industry, and new or amended environmental legislation and regulatory initiatives; (8) changing economic, regulatory and political environments in the markets in which the Company operates; (9) the potential disruption or interruption of the Company’s operations due to war, accidents, political events, severe weather, cyber threats, terrorist acts, or other natural or human causes beyond the Company’s control; (10) pandemics, governmental responses thereto, economic downturns and possible recessions caused thereby; (11) inflationary risks and recent changes in inflation and interest rates, and the risks of recessions and economic downturns caused thereby or by efforts to reduce inflation; (12) changes in economic conditions; limitations in the availability of, and costs of, supplies, materials, contractors and services that may delay the drilling or completion of wells or make such wells more expensive; (13) the amount and timing of future development costs; (14) regulatory changes, including those related to carbon dioxide and greenhouse gas emissions; and (15) other risk factors included from time to time in documents U.S. Energy files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in the Company’s publicly filed reports, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and future annual reports and quarterly reports. These reports and filings are available at www.sec.gov. Unknown or unpredictable factors also could have material adverse effects on the Company’s future results. The Company cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements except as required by applicable law. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on behalf of the Company are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results. The forward-looking statements included in this communication are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and takes no obligation to update or correct information prepared by third parties that are not paid for by the Company. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
FAQ
What helium concentration did U.S. Energy Corp (USEG) discover in its Montana well?
When will U.S. Energy Corp (USEG) begin drilling additional wells in Montana?
What type of formations contain the helium discovered by U.S. Energy Corp (USEG)?
When will U.S. Energy Corp (USEG) conduct extended flow tests on the helium discovery?
