RIVERTON, Wyo., Nov. 2, 2009 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (Nasdaq:USEG) ("USE" or the "Company"), a natural resources exploration and development company with interests in oil and gas, molybdenum, geothermal, and real estate assets, today announced the initial production rate from its BCD Farms 16-21 #1H Bakken well and provided an operations update regarding the Williston Basin drilling program.

Williston Basin - Bakken Drilling Program

The BCD Farms 16-21 #1H well, which is operated by Brigham Exploration Company (NASDAQ: "BEXP") ("Brigham" or "BEXP"), flowed at an initial 24-hour production test rate of approximately 1,553 barrels of oil and 1.34 MMCF of natural gas per day or 1,776 BOE/D. The well is located in the northwest portion of the Rough Rider acreage, and is located approximately 13 miles northwest of the Brad Olsen well. The well was completed with swell packers and 28 fracture stimulation stages. USE's initial working interest in this well is approximately 45% (~35.55 net revenue interest), and sales from this well are expected to commence immediately.

The Lee 16-21 #1H well and Strand 16-9 #1H wells, which are also operated by Brigham, have both been drilled to total measured depth of ~20,000 feet. Upon completion of the drilling, a sleeve was run into each well with 28 swell packers. Completion initiatives for the Lee well are expected to commence in early November. The initial production flow rate for these wells will be announced following the completion of a 24-hour flow rate test. USE's initial working interest in the Lee well is approximately 60% and its initial working interest on the Strand well is approximately 40%.

Brigham has recently added a third rig to the current drilling program that USEG is participating in and two additional wells have recently been spud and are currently drilling to depth. The two wells are the Williston 25-6 #1H (~65% initial working interest) and the State 36-1 #1H (~28% initial working interest). As with our other Brigham program wells, both the Williston and State wells are targeting the middle Bakken formation, and are planned to be drilled to a total measured depth of approximately 20,000 feet (~10,000 ft vertical; ~10,000 horizontal). To date, the drilling of the Williston well has progressed to the horizontal portion of the well bore and is advancing towards target depth, and the State 36-1 #1H well has reached a total measured depth of ~7,500 feet.