US Energy Corp. announced that its partner, Houston Energy, L.P., reached contract depth of 8,000 ft on the second well drilled in partnership with US Energy Corp. The well was deemed to be non-productive and has been plugged and abandoned.

"We had hoped to build on our initial positive results with Houston Energy but were not able to do so in this instance," stated Keith G. Larsen, CEO of US Energy Corp. "We are currently evaluating additional drilling opportunities with both Houston Energy and our other partners in an effort to capitalize on improved rig costs and availability," he added.