U.S. Energy Corp. Enters Into Letter of Intent to Sell Its Remington Village Apartment Complex

U.S. Energy Corp. USEG announced today that it has entered into a Letter of Intent ("LOI") with an undisclosed buyer to sell its Remington Village Apartment Complex located in Gillette, Wyoming. Under the terms of the LOI, the buyer has offered to pay $16.0 million for the Apartment Complex. The LOI is non-binding and is subject to due diligence and the execution of a purchase and sale agreement ("PSA") which is expected to take place within 15 days. Under the terms of the LOI, the purchase is not subject to third party financing and closing is anticipated to take place within 90 days of signing the PSA. Remington Village is classified in the Company's historical financial statements as held for sale and its operations have been reflected as discontinued operations. The current cost basis for Remington Village is $17.73 million. Accordingly, the Company expects to record a non-cash impairment of $1.97 million in the second quarter of 2012. After selling costs, the Company expects to net $15.76 million from this sale and will retire the $9.8 million note related to this asset with the proceeds from the sale.