U.S. Energy Corp. (USEG)

[LouisDesyjr]

Acquire Interest in Wattenberg Development Program?

Press release on project
http://ih.advfn.com/p.php?pid=nmona&article=71908701

10Q report for period ending March 31, 2016:
http://ih.advfn.com/p.php?pid=nmona&article=71496070

I do not think the company will be able to complete the project or make the purchase.

The development program is slated to begin later this year and drill into mid 2017. The Company’s commitment will cost approximately $9.6 million for drilling and completing the wells

The cost of the program is $9.6 million, but according to the last 10Q report, the company only has 1.9 million cash on hand, and does not have enough to pay is current liabilities of $14.8 million.

I do not see how a company that is losing money every quarter, and does not even have half of the projects cost, could make such a purchase. No one in their right mind would finance such a project for a company in this condition.

Louis J. Desy Jr.