U.S. Energy Corp. is a diversified natural resource development company with a primary focus on the production of oil and gas in the Rocky Mountain and Gulf Coast Regions.  The Company has entered into a drilling participation agreement with Brigham Exploration Company in their Rough Rider acreage in the Williston Basin of North Dakota, and also has active drilling partnerships with three gulf coast operators. The company has set a mid year daily production goal of 2,000 BOE/D and a year end daily production goal of 2,500 BOE/D in 2010.

Additionally, the Company has entered into a $400 million option agreement with Thompson Creek Metals to develop the Mt. Emmons molybdenum project.