Deanna RE: USEG, here is SEC filing (below) this morning. It was for (2) non-operating properties. PED filed SEC report over month ago saying their production was at over 90%, so this has nothing to do with PED either (legally)...???
Item 1.01 Entry into a Material Definitive Agreement.
On September 25, 2020, U.S. Energy Corp. (“U.S. Energy”, “we”, “us” or the “Company”), entered into an Asset Purchase Agreement (the “APA”) with Randolph N. Osherow, as Chapter 7 trustee, for FieldPoint Petroleum Corporation’s Chapter 7 bankruptcy proceedings (the “Seller”).
Pursuant to the APA, we acquired all of the Seller’s rights to, and interest in, both operated and non-operated properties primarily in Lea County, New Mexico, and Converse County, Wyoming (the “Properties”). The Properties encompass approximately 21 total wells of which 14 are currently producing. The Properties also include approximately 500 net acres in Lea County, New Mexico, which are held by production.
We paid $25,000 as a deposit in connection with the acquisition and paid the remaining amount of the $500,000 aggregate purchase price (i.e., $475,000), on September 25, 2020, upon the closing of the acquisition, which was subject to the approval of the bankruptcy court.
The APA contained customary representations and warranties of the parties.
The foregoing summary description of the material terms of the APA does not purport to be complete and is qualified in its entirety by reference to the full text of the APA, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference in this Item 1.01.
A total of $375,000 of the funds paid by the Company under the APA was raised by the entry into the APEG Note as discussed below under Item 2.03, which description is incorporated by reference in this Item 1.01 by reference in its entirety.
