SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 and 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): May 12, 2003 (April 29, 2003)
U.S. ENERGY CORP.
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Exact Name of Registrant as Specified in its Charter)
Wyoming 0-6814 83-0205516
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
Glen L. Larsen Building
877 North 8th West
Riverton, WY 82501
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (307) 856-9271
Not Applicable
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(Former Name, Former Address or Former Fiscal Year,
if Changed From Last Report)
ITEM 5. OTHER EVENTS
The Company reports that its Rocky Mountain Gas, Inc. ("RMG") subsidiary
has signed a Letter of Intent to enter into an Earn-In Joint Venture with Gastar
Exploration, Ltd. (TSE: "YGA"). The subject coalbed methane properties are
located in the Powder River Basin near Gillette, Wyoming and include 200 drilled
and completed CBM wells, approximately 37,000 net undeveloped leasehold acres,
and numerous drilling permits and water discharge permits. These wells are in
the early stages of dewatering and gas production is just beginning to come
on-line.
Under the terms of definitive Earn-In Joint Venture agreement, RMG will be
required to make a cash payment of approximately $7,000,000 within 30 days of
signing the Letter of Intent to earn an undivided 50% interest in the existing
developed properties and commit to spend an additional $15,000,000 through 2005
to develop the remaining acreage to earn 50% of Gastar's interest in all of the
currently undeveloped acreage held by Gastar. RMG would be designated as the
operator on all of the joint venture properties.
As previously reported, RMG is in negotiations to obtain financing to
expand operations and acquire properties, including the Gastar properties. CCBM,
Inc., a division of Carrizo Oil & Gas, Inc. of Houston, TX, will have the right
to participate in the Gastar properties acquisition, equally with RMG.
FORWARD LOOKING STATEMENTS
This Report on Form 8-K includes "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements other than statements of historical fact
included in this Report, are forward-looking statements. In addition, whenever
words like "expect," "anticipate" or "believe" are used, we are making
forward-looking statements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
U.S. ENERGY CORP.
Dated: May 9, 2003 By: /s/ Daniel P. Svilar
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DANIEL P. SVILAR, Secretary
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