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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (35487)	6/30/2011 3:01:49 PM
From: E_K_S	Read Replies (2) \| Respond to of 78644

Re: US Energy Corp. (USEG) Company entered into a JV with Crimson Exploration Inc. (CXPO) Under the terms of the agreement, USE will acquire 30% of Crimson's working interest (~23% net revenue interest) in approximately 7,186 acres (2,156 acres net to USE) U.S. Energy Corp. Enters Into Second Eagle Ford Participation Agreement With Crimson Exploration Inc. finance.yahoo.com ------------------------------------------------------------------------ It looks like USEG is along for the ride and has minimal risk. CXPO carries too much debt for me so I have no interest in adding this one to my basket. I do like the JV deal as long as USEG didn't pay too much for their interest. From the article"...This acquisition brings USEG's total acreage in the Eagle Ford to ~11,861 gross acres (3,558.5 acres net to USEG) with the potential for up to 70 gross and 21.3 net Eagle Ford drilling locations. The prospect also has additional Austin Chalk and Buda formation production potential..." ------------------------------------------------------------------ My last buy was on 5/17/2001 for $4.03/share. Until I can find out what they paid, I will hold off adding shares for now. USEG makes up 5% of my basket. Based on the trading activity in both stocks, the level of interest in this announcement is small. Crimson and/or USEG may have paid top dollar to do this deal. No room for failure. EKS