US Energy starts public offering of 5M shares

AP News
Posted: Dec 01, 2009 2:22 PM

U.S. Energy Corp. said Tuesday that it started a public offering of 5 million shares of its common stock.

The natural resource company plans to use the proceeds to finance its capital spending through next year, concentrating on the expansion of its Williston Basin drilling program with Brigham Exploration Co. and further drilling work with PetroQuest Energy and Yuma Exploration.

U.S. Energy is giving the underwriters a 30-day option to buy up to an additional 750,000 shares to cover any over-allotments.

The company's stock fell 5 cents to $5.89 in afternoon trading.