For Investors Only -- US Energy (USEG) Ready to Breakout -- Bakken, North Dakota, USA

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The one Bakken stock that has failed to trade at a premium is U.S. Energy (USEG). While all other Bakken stocks trade at a 3 to 10 times premium of invested Bakken capital, U.S. Energy actually trades at a discount to invested Bakken capital. That could be poised to change over the next few months.

For starters, U.S. Energy participated in 5 successful Bakken wells in the second quarter. Four wells were with Brigham Exploration (BEXP) and one well was with Murex Energy. U.S. Energy is scheduled to complete 4 Bakken wells over the next 4 months with Zavanna LLC. U.S. Energy is participating in a drilling program with Zavanna that plans to drill one well per month over the next 12 months. U.S. Energy has 5,500 net acres held by production with Brigham Exploration and 6,200 net acres with Zavanna.

Additionally, U.S. Energy has over 13,000 net Bakken acres in North Eastern Montana that do not have proven production. Overall, U.S. Energy has 25,200 net Bakken acres under lease.

U.S. Energy has other oil and gas assets besides its Bakken production and acreage. The most significant asset is 3,550 net acres in the Eagle Ford Shale oil window in a joint venture with Crimson Exploration (CXPO).