AUSTIN, TX -- (Marketwire) -- 08/26/09 -- Brigham Exploration Company (NASDAQ: BEXP) announced entry into a drilling participation agreement to accelerate 2009 drilling activity in Williams and McKenzie Counties, North Dakota on spacing units subject to near term lease expirations which Brigham believes to be core. Brigham will serve as operator and will drill the first six initial wells during the remainder of 2009 using two drilling rigs.

Brigham will retain 35% of its original working interest in the initial well in each spacing unit, with U.S. Energy Corp. (NASDAQ: USEG) acquiring the remaining 65% of the original working interest. After achieving payout on the initial six wells on a combined basis, Brigham will back in for 35% of U.S. Energy's working interest in each of the initial wells. The initial six wells currently planned under the participation agreement are outlined in the table below along with Brigham's approximate pre-payout working interest.

                                BEXP
       WELL           COUNTY   Est. WI             CURRENT STATUS
Brad Olson 9-16 #1H  Williams   33%  At total depth with liner and 28 swell
                                      packers - anticipate completing with
                                      28 frac stages in Sept.
BCD Farms 16-21 #1H  Williams   26%  Drilling - anticipate completing with
                                      28 frac stages
Lee #1H              Williams   30%  Anticipated spud after BCD Farms
Well # 4             Williams   30%  Anticipated spud after Lee #1H
Well # 5             Williams   21%  Anticipated spud mid-September
Well # 6             Williams   18%  Anticipated spud mid to late October

Subsequent to the initial six wells, U.S. Energy has the option to participate in nine additional 1280 acre spacing units in Williams and McKenzie Counties, North Dakota, as selected by Brigham. Brigham may retain up to 50% of its original working interest in the nine spacing units. Brigham would back in after payout, on a combined basis, in the first four optional wells for 35% of U.S. Energy's original working interest. Should U.S. Energy elect into the final five wells, Brigham would back in for 27.7% of U.S. Energy's original working interest on a well by well basis.

Subsequent infill wells in spacing units that U.S. Energy participates in will be drilled with Brigham maintaining 64% of its original working interest and U.S. Energy maintaining 36% of the original working interest.

Bud Brigham, the Chairman, President and CEO, stated, "We're extremely excited about working with U.S. Energy in the Bakken play.