Houston-based U.S. Energy Corp. said Oct. 5 it agreed to purchase oil and gas assets from Lubbock Energy Partners, Synergy Offshore and certain entities controlled by Sage Road Capital in a deal valued at $99.5 million. The acquired assets represent a diversified, conventional portfolio of operated, producing, low-decline, oil-weighted assets in west Texas, Eagle Ford, Rockies and Mid-Continent. The deals are expected to increase average daily production for U.S. Energy 377 percent from 380 boed to 1,814 boed. Closing is expected in 2021Q4.
Oil & Gas Journal said U.S. Energy will issue 19.9 million shares of common stock, pay $1.25 million cash and assume $3.3 million in debt from the sellers, who will own 80.8 percent of the company’s outstanding common stock.