U.S. Energy Corp has announced an agreement to sell oil and gas producing properties in Karnes County, Texas for $6 million to Warwick-Artemis, LLC. The agreement includes customary true-ups for operating costs, taxes, and revenues prior to the effective date of April 1, 2024, along with a $600,000 deposit from Warwick-Artemis. Should any party breach their representations and warranties, each may have the capacity to terminate the agreement. U.S. Energy Corp will retain the deposit as liquidated damages if Warwick-Artemis fails to close the transaction, under certain conditions. Conversely, Warwick-Artemis may receive a refund of the deposit if U.S. Energy Corp is in breach. The transaction is anticipated to close by July 31, 2024, with customary closing conditions.
Names mentioned: - U.S. Energy Corp - New Horizon Resources LLC (wholly-owned subsidiary of U.S. Energy Corp) - Warwick-Artemis, LLC