U.S. Energy Corp. Announces Immediate Cost Saving Measures, Total Compensation Saving In Excess Of $600K Annually, SG&A To Be Cut ~20%

U.S. Energy Corp.

, (the "Company," "we" or "us") today announced that in light of the ongoing oil price environment the Company has taken measures to reduce general and administrative costs by approximately 20%. The cost reductions include a 15% reduction in workforce and a significant reduction in annual compensation for all remaining employees. All officers and directors of the Company have agreed to take a 20% cut in salaries and fees, respectively. The total compensation savings is in excess of $600,000 on an annualized basis. The Company also anticipates a further reduction of approximately $500,000 in G&A costs by the end of 2015. CEO Statement: "We believe that cutting our general and administrative costs is a prudent business decision in light of the current price of oil. We will also continue to evaluate other cost saving measures going forward which should have meaningful impact to our bottom line," stated Keith Larsen, CEO of the Company. "These measures are part of our forward looking plan that will allow us to continue to participate in our ongoing drilling programs, while we continue to evaluate several potentially accretive transactions in this price environment," he added.