HOUSTON, March 18, 2026 (GLOBE NEWSWIRE) -- U.S. Energy Corp. (NASDAQ: USEG) (“U.S. Energy” or the “Company”), an integrated energy company advancing a diversified industrial gas, energy, and carbon management platform, today announced that it has reached a Final Investment Decision (“FID”) for the construction of its processing facility at the Big Sky Carbon Hub (“Big Sky”) in Montana, and executed an Engineering, Procurement, and Construction (“EPC”) agreement with CANUSA EPC under a fixed-scope EPC contr ...

Core Insights - U.S. Energy Corp. is undergoing a strategic transformation, with significant developments expected by 2026 that will establish a fully integrated industrial gas and carbon management hub [1][3] Infrastructure Development - The centerpiece of the 2026 plan is a processing facility designed to handle approximately 8 million cubic feet per day of inlet capacity, which will produce high-purity helium and refined CO₂ [4][5] - The facility will require about 2.5 megawatts of power, primarily sourced from the regional electrical grid, with backup from U.S. Energy's natural gas infrastructure, emphasizing the importance of integrated ownership [6] Pipeline Installation - A critical phase in the development will begin in Spring 2026, involving the installation of roughly 10 miles of in-field gathering pipelines to transport gas from existing wells to the processing plant, with completion expected by the third quarter of 2026 [8][9] Regulatory Positioning - U.S. Energy has submitted the first Monitoring, Reporting, and Verification (MRV) plans in Montana, which, once approved, will position the Kevin Dome program among the 20 largest CCUS projects in the U.S., providing a competitive advantage [10][11] Resource Control - U.S. Energy controls nearly 80,000 net acres at the Kevin Dome, containing approximately 1.3 trillion cubic feet of CO₂ and 2.3 billion cubic feet of helium, ensuring long-term feedstock for industrial gas sales and carbon management services [12][13][14] Revenue Model - The company is developing a closed-loop revenue model that monetizes both helium and CO₂ through distinct pathways, with helium targeting premium markets and CO₂ used for enhanced oil recovery and geological sequestration [15][16][17][18] Market Context - The demand for industrial gases like helium and CO₂ is increasing, driven by their essential roles in the digital economy and the need for long-term CO₂ sequestration solutions, positioning U.S. Energy as a key player in this emerging market [19]

Core Viewpoint - U.S. Energy Corp. is advancing its Kevin Dome project into a scalable industrial gas and carbon management hub, focusing on helium production, CO2 recovery, and enhanced oil recovery, positioning itself at the intersection of energy security and environmentally responsible practices [1][2]. Key Milestones Accomplished - The company has aggregated approximately 80,000 net acres in Montana's Kevin Dome, with a third-party evaluation estimating 1.3 trillion cubic feet (Tcf) of CO2 and 2.3 billion cubic feet (Bcf) of helium [5]. - U.S. Energy has submitted the first Monitoring, Reporting, and Verification (MRV) plans in Montana, which, upon approval, could rank its project among the top 20 largest carbon capture projects in the U.S. [5]. - Three producing industrial gas wells are currently operational, expected to supply the initial processing facility for multiple years without additional drilling [5][6]. - The final engineering and design work for the processing facility has been completed, and an 80-acre plant site has been acquired, reducing execution risk [5]. Processing Facility and Infrastructure Update - The planned processing facility is designed for approximately 8.0 million cubic feet per day (MMcf/d) of inlet capacity, producing high-purity helium and refined CO2 for enhanced oil recovery [8]. - Installation of about 10 miles of in-field gathering pipelines is set to begin in Spring 2026, with completion targeted for Q3 2026 [9]. Expected Production and Commercialization - Initial operations are expected to yield approximately 12 million cubic feet of helium and 125,000 metric tons of refined CO2 annually [13]. - The company is in discussions with a global industrial gas company for a long-term helium offtake agreement, anticipated to be finalized in Q1 2026 [10]. Enhanced Oil Recovery on Legacy Assets - U.S. Energy plans to utilize refined CO2 in a large-scale enhanced oil recovery project at its Cut Bank oil field, leveraging favorable reservoir characteristics and existing infrastructure [11]. 2026 Catalysts and Investor Outreach Events - Key milestones anticipated in 2026 include executing a long-term helium offtake agreement, securing project-level financing, and completing gathering infrastructure [14]. - Upcoming investor outreach events include a non-deal roadshow on February 25-26, 2026, and participation in the Emerging Growth Virtual Conference on February 26, 2026 [14].