US Energy Corp Secures Montana Property for Helium Production

US Energy Corporation has expanded its operations into Montana, acquiring acreage within the Kevin Dome structure in Toole County as part of its strategy to produce helium.

The company finalized this move through a signed agreement with Wavetech Helium, gaining access to helium reserves spanning Colorado, Kansas, and Montana. The newly acquired land is identified as holding promising helium pay zones, primarily composed of inert nitrogen and carbon dioxide heavy areas. US Energy Corporation plans to commence drilling activities on the Wavetech asset by late July or early August 2024.

Ryan Smith, CEO of US Energy Corporation, expressed enthusiasm about the acquisition, stating, “The company believes it has positioned itself to capitalize on what we expect to be a transformative resource and economic opportunity in a region where we have longstanding community ties.” He emphasized, “In simple terms, we believe the Kevin Dome structure offers substantial resource potential and economically competitive helium comparable to any location in North America.”

In addition to securing the deal with Wavetech, US Energy Corporation has entered a non-binding letter of intent with Synergy Offshore for additional operated acreage adjacent to its existing holdings. Together, these agreements consolidate a contiguous land position of approximately 164,000 net acres across the Kevin Dome, featuring numerous promising helium pay zones.

US Energy Corporation highlighted challenges within the global helium supply chain, including disruptions in shipping and trade restrictions affecting foreign supply. Earlier in June 2024, the Council of the European Union announced its 14th sanctions package against Russia, which includes a prohibition on Russian helium imports into the EU effective from September 26, 2024. The European Commission cited these measures as responsive to current needs and enforcement priorities, focusing on energy-related actions targeting liquefied natural gas (LNG) and vessels supporting Russia’s military operations.

U.S. Energy intends to commence drilling and completing two wells at the Wavetech Asset starting in late July. The sites are fully permitted and prepared, with the company expecting to explore and test multiple pay zones across the Duperow, Souris River, and Flathead Sands formations. These tests across various zones will enhance internal reserve assessments and facilitate near-term third-party reserve certifications. Each of the two wells is projected to cost $1.4 million.

U.S. Energy is a dynamic energy company focused on managing a portfolio of productive assets, aimed at implementing an appealing capital returns initiative for its shareholders. Headquartered in Houston, TX, U.S. Energy is dedicated to leading efforts in reducing carbon emissions within its operational regions.