06:03 PM EDT, 07/01/2024 (MT Newswires) -- U.S. Energy ( USEG ) said Monday it closed the acquisition of operated acreage for helium production in the Kevin Dome structure in Toole County, Montana, from Wavetech Helium.

Wavetech will assign roughly 83% of its interests to U.S. Energy ( USEG ) for a consideration including $2 million cash, 2.6 million U.S. Energy ( USEG ) restricted common shares and additional payments to cover costs attributable to Wavetech's 17.5% interest.

U.S. Energy ( USEG ) said it also executed a nonbinding letter of intent with Synergy Offshore to acquire offsetting operated acreage in the area. Synergy Offshore will assign 88% of its interests to U.S. Energy ( USEG ) for $2 million cash and 4.8 million U.S. Energy's ( USEG ) restricted common shares.

The collective assets comprise control of nearly 164,000 net acres across the Kevin Dome, the company said.

U.S. Energy ( USEG ) shares were up nearly 15% in after-hours activity.

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