U.S. Energy Corp. (NASDAQ:USEG) is included among the 8 Best Oil and Gas Penny Stocks to Buy Now.
U.S. Energy Corp. (NASDAQ:USEG) is a growth-focused energy company engaged in operating a portfolio of high-quality producing assets.
U.S. Energy Corp. (NASDAQ:USEG) announced on March 18 that it had reached a Final Investment Decision (FID) for the construction of its processing facility at the Big Sky Carbon Hub in Montana. The company also revealed that it had signed an Engineering, Procurement, and Construction agreement with CANUSA EPC.
The facility is designed for approximately 8 MMcf/d of inlet capacity, with a target to produce around 12 MMcf of helium and 125,000 metric tons of refined CO₂ annually at initial operations. The company expects to qualify for approximately $85/metric ton in Section 45Q federal tax credits, supporting an estimated $130 million in Phase 1 tax credit value.
U.S. Energy Corp. (NASDAQ:USEG) expects to commence gathering pipeline installation in the spring of this year, with commissioning targeted in the third quarter. The company then expects to initiate helium sales and carbon management operations in the first quarter of 2027.
Ryan Smith, President and CEO of U.S. Energy Corp. (NASDAQ:USEG), commented:
“Today’s announcements represent the culmination of 18 months of deliberate, disciplined execution, and the beginning of what we believe will be a transformational chapter for U.S. Energy. We have reached FID, signed our EPC contract with CANUSA EPC, and construction is underway at Big Sky. Our recent successful capital markets activity has pulled forward both the timeline and certainty of construction, and today we are putting that capital to work. CANUSA EPC brings precisely the construction and execution expertise required to deliver a complex, integrated industrial gas and carbon management facility on time and on budget. With three producing wells online, final engineering complete, a purpose-built plant site secured, and EPA MRV applications submitted, every element of a de-risked project is in place.
As global helium markets continue to tighten amid ongoing supply disruptions and increasing geopolitical uncertainty, we believe Big Sky is uniquely positioned to provide a secure, domestic source of this critical gas alongside its broader industrial gas and carbon management capabilities. We expect the market to increasingly recognize the differentiated, multi-revenue nature of this platform as we move through construction and toward cash flow generation at Big Sky in early 2027.”
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