U.S. Energy (USEG) 10-Q 14 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-06814
Entity Registrant Name	US ENERGY CORP
Entity Central Index Key	0000101594
Entity Tax Identification Number	83-0205516
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1616 S. Voss Road
Entity Address, Address Line Two	Suite 725
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77057
City Area Code	(346)
Local Phone Number	509-8734
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	USEG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,506,570

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and equivalents	$ 1,175	$ 4,411
Oil and natural gas sales receivable	2,714	3,193
Marketable equity securities	91	107
Other current assets	973	558
Commodity derivative asset-current	8
Real estate assets held for sale, net of selling costs	175	175
Total current assets	5,136	8,444
Oil and natural gas properties under full cost method:
Unevaluated properties	1,584	1,584
Evaluated properties	205,463	203,144
Less accumulated depreciation, depletion and amortization	(101,391)	(96,725)
Net oil and natural gas properties	105,656	108,003
Property and equipment, net	913	651
Right-of-use asset	773	868
Other assets	330	354
Total assets	112,808	118,320
Current liabilities:
Accounts payable and accrued liabilities	8,464	7,832
Accrued compensation and benefits	611	1,111
Commodity derivative liability-current		1,694
Asset retirement obligations-current	668	668
Current lease obligation	176	189
Total current liabilities	9,919	11,494
Credit facility	12,000	12,000
Asset retirement obligations- noncurrent	15,226	14,774
Long-term lease obligation, net of current portion	704	794
Deferred tax liability	610	898
Other noncurrent liabilities	6	6
Total liabilities	38,465	39,966
Commitments and contingencies (Note 8)
Shareholders’ equity:
Common stock, $0.01 par value; 245,000,000 shares authorized; 25,071,372 and 25,023,812 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	251	250
Additional paid-in capital	217,632	216,690
Accumulated deficit	(143,540)	(138,586)
Total shareholders’ equity	74,343	78,354
Total liabilities and shareholders’ equity	$ 112,808	$ 118,320

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	245,000,000	245,000,000
Common stock, shares issued	25,071,372	25,023,812
Common stock, shares outstanding	25,071,372	25,023,812

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 7,978	$ 13,480	$ 16,251	$ 22,352
Operating expenses:
Lease operating expenses	3,877	4,646	8,400	7,382
Production taxes	538	913	1,058	1,485
Depreciation, depletion, accretion and amortization	2,896	2,571	5,313	4,457
General and administrative expenses	3,368	2,642	6,140	5,588
Total operating expenses	10,679	10,772	20,911	18,912
Operating income (loss)	(2,701)	2,708	(4,660)	3,440
Other non-operating income (expense):
Commodity derivative gain (loss)	288	(2,132)	1,208	(8,969)
Marketable equity securities loss	(16)	(121)	(16)	(40)
Other expense, net	(6)	(5)	(6)	(6)
Interest expense, net	(289)	(60)	(558)	(108)
Total other non-operating income (expense)	(23)	(2,318)	628	(9,123)
Net income (loss) before income taxes	(2,724)	390	(4,032)	(5,683)
Income tax (expense) benefit	209	(268)	270	2,421
Net income (loss)	$ (2,515)	$ 122	$ (3,762)	$ (3,262)
Weighted Average Number of Shares Issued, Basic	25,186,797	24,923,812	25,182,704	24,323,859
Weighted Average Number of Shares Outstanding, Diluted	25,186,797	25,265,180	25,182,704	24,323,859
Earnings Per Share, Basic	$ (0.10)	$ 0	$ (0.15)	$ (0.13)
Earnings Per Share, Diluted	$ (0.10)	$ 0	$ (0.15)	$ (0.13)
Oil [Member]
Revenue:
Total revenue	$ 7,028	$ 11,334	$ 14,124	$ 19,167
Natural Gas, Midstream [Member]
Revenue:
Total revenue	$ 950	$ 2,146	$ 2,127	$ 3,185

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balances at Dec. 31, 2021	$ 47	$ 149,276	$ (135,888)	$ 13,435
Balance, shares at Dec. 31, 2021	4,676,301
Shares issued for acquired properties	$ 199	64,495		64,694
Shares issued for acquired properties, shares	19,905,736
Stock-based compensation		1,500		1,500
Shares issued upon vesting of restricted stock awards	$ 4	(4)
Shares issued upon vesting of restricted stock awards, shares	373,500
Shares withheld to settle tax withholding obligations for restricted stock awards	$ (1)	(306)		(307)
Shares withheld to settle tax withholding obligations for restricted stock awards, shares	(81,725)
Exercise of warrants		213		213
Exercise of warrants, shares	50,000
Net loss			(3,384)	(3,384)
Balances at Mar. 31, 2022	$ 249	215,174	(139,272)	76,151
Balance, shares at Mar. 31, 2022	24,923,812
Balances at Dec. 31, 2021	$ 47	149,276	(135,888)	13,435
Balance, shares at Dec. 31, 2021	4,676,301
Net loss				(3,262)
Balances at Jun. 30, 2022	$ 249	215,783	(139,728)	76,304
Balance, shares at Jun. 30, 2022	24,923,812
Balances at Mar. 31, 2022	$ 249	215,174	(139,272)	76,151
Balance, shares at Mar. 31, 2022	24,923,812
Stock-based compensation		609		609
Net loss			122	122
Cash dividends, per share			(578)	(578)
Balances at Jun. 30, 2022	$ 249	215,783	(139,728)	76,304
Balance, shares at Jun. 30, 2022	24,923,812
Balances at Dec. 31, 2022	$ 250	216,690	(138,586)	78,354
Balance, shares at Dec. 31, 2022	25,023,812
Stock-based compensation		727		727
Shares issued upon vesting of restricted stock awards	$ 3	(3)
Shares issued upon vesting of restricted stock awards, shares	273,000
Shares withheld to settle tax withholding obligations for restricted stock awards	$ (1)	(149)		(150)
Shares withheld to settle tax withholding obligations for restricted stock awards, shares	(62,140)
Net loss			(1,247)	(1,247)
Cash dividends, per share			(596)	(596)
Balances at Mar. 31, 2023	$ 252	217,265	(140,429)	77,088
Balance, shares at Mar. 31, 2023	25,234,672
Balances at Dec. 31, 2022	$ 250	216,690	(138,586)	78,354
Balance, shares at Dec. 31, 2022	25,023,812
Net loss				(3,762)
Balances at Jun. 30, 2023	$ 251	217,632	(143,540)	74,343
Balance, shares at Jun. 30, 2023	25,071,372
Balances at Mar. 31, 2023	$ 252	217,265	(140,429)	77,088
Balance, shares at Mar. 31, 2023	25,234,672
Stock-based compensation		607		607
Net loss			(2,515)	(2,515)
Cash dividends, per share			(596)	(596)
Share repurchases	$ (1)	(240)		$ (241)
Share repurchases, shares	(163,300)			163,300
Balances at Jun. 30, 2023	$ 251	$ 217,632	$ (143,540)	$ 74,343
Balance, shares at Jun. 30, 2023	25,071,372

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividend per share	$ 0.0225	$ 0.0225	$ 0.0225

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (3,762)	$ (3,262)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, accretion, and amortization	5,313	4,457
Deferred income taxes	(288)	(2,460)
Total commodity derivative (gains) losses, net	(1,208)	8,969
Commodity derivative settlements paid	(494)	(4,487)
Loss on marketable equity securities	16	40
Amortization of debt issuance costs	24	20
Stock-based compensation	1,334	2,109
Right of use asset amortization	95	75
Changes in operating assets and liabilities:
Oil and natural gas sales receivable	479	(5,198)
Other assets	240	(192)
Accounts payable and accrued liabilities	314	4,315
Accrued compensation and benefits	(500)	(675)
Payments on operating lease liability	(102)	(49)
Payments on asset retirement obligations	(52)
Net cash provided by operating activities	1,409	3,662
Cash flows from investing activities:
Acquisition of proved properties		(4,383)
Oil and natural gas capital expenditures	(2,402)	(1,131)
Expenditures for pending acquisitions		(592)
Property and equipment expenditures	(373)	(295)
Proceeds from sale of oil and gas properties		1,231
Net cash used in investing activities	(2,775)	(5,170)
Cash flows from financing activities:
Borrowings on credit facility		4,500
Repayment of debt		(3,847)
Payment of fees for credit facility		(174)
Repayments of insurance premium finance note payable	(286)	(236)
Exercise of warrant		195
Shares withheld to settle tax withholding obligations for restricted stock awards	(151)	(307)
Dividends paid	(1,192)	(578)
Repurchases of common stock	(241)
Net cash used in financing activities	(1,870)	(447)
Net decrease in cash and equivalents	(3,236)	(1,955)
Cash and equivalents, beginning of period	4,411	4,422
Cash and equivalents, end of period	$ 1,175	$ 2,467

ORGANIZATION, OPERATIONS AND SI

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Organization and Operations U.S. Energy Corp. (collectively with its wholly-owned subsidiaries, Energy One LLC (“Energy One”) and New Horizon Resources LLC (“New Horizon Resources”), referred to as the “Company” in these Notes to Unaudited Condensed Consolidated Financial Statements) is incorporated in the State of Delaware. The Company’s principal business activities are focused on the acquisition and development of onshore oil and natural gas properties in the United States, which the Company considers a single operating segment. Our principal properties and operations are in the Rockies region (Montana, Wyoming and North Dakota), the Mid-Continent (Oklahoma, Kansas and North and East Texas), and the West Texas, South Texas, and Gulf Coast regions. Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on April 13, 2023. Our financial condition as of June 30, 2023, and operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the financial condition and results of operations that may be expected for any future interim period or for the year ending December 31, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of oil and gas properties acquired, oil and natural gas reserves that are used in the calculation of depreciation, depletion, amortization, and impairment of the carrying value of evaluated oil and natural gas properties; realizability of unevaluated properties; production and commodity price estimates used to record accrued oil and natural gas sales receivables; future prices of commodities used in the valuation of commodity derivative contracts; and the cost and timing of future asset retirement obligations. The Company evaluates its estimates on an on-going basis and bases its estimates on historical experience and on various other assumptions the Company believes to be reasonable. Due to inherent uncertainties, including the future prices of oil and natural gas, these estimates could change in the near term and such changes could be material. Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 to Topic 326, Financial Instruments-Credit Losses Principles of Consolidation The accompanying financial statements have been prepared in conformity with GAAP and include the accounts of U.S. Energy Corp. and its wholly-owned subsidiaries Energy One and New Horizon Resources. U.S. Energy Corp. accounts for its share of oil and gas exploration and production activities, in which it has a direct working interest, by reporting its proportionate share of assets, liabilities, revenues, costs, and cash flows within the relevant lines on the balance sheets, statements of operations, and statements of cash flows. All inter-company balances and transactions have been eliminated in consolidation.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	2. ACQUISITIONS January 2022 Acquisition On January 5, 2022 (the “Closing Date”), the Company closed the acquisitions (the “Acquisition”) contemplated by three separate Purchase and Sale Agreements (the “Purchase Agreements” and the “Closing”), entered into by the Company on October 4, 2021, with each of (a) Lubbock Energy Partners LLC (“Lubbock”); (b) Banner Oil & Gas, LLC, Woodford Petroleum, LLC and Llano Energy LLC (collectively, “Banner”), and (c) Synergy Offshore LLC (“Synergy”, and collectively with Lubbock and Banner, the “Sellers”). Pursuant to the Purchase Agreements, the Company acquired certain oil and gas properties from the Sellers, representing a diversified portfolio of primarily operated, producing, oil-weighted assets located across the Rockies, West Texas, Eagle Ford, and Mid-Continent. The acquisition also included certain wells, contracts, technical data, records, personal property and hydrocarbons associated with the acquired assets (collectively with the oil and gas properties acquired, the “Acquired Assets”). The Company accounted for the acquisition of the Acquired Assets as an asset acquisition. The purchase price for the Acquired Assets was (a) $ 125,000 6,568,828 1,000,000 3.3 6,790,524 3.1 125,000 6,546,384 66.4 1.25 19,905,736 64.7 0.5 3.3 3.1 SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred as of the Closing Date: Cash $ 1,250 Value of 19,905,736 64,694 Purchase price adjustments 487 Transaction costs 1,267 Total consideration paid 67,698 Debt assumed 3,347 Commodity derivative liabilities assumed 3,152 Suspense accounts assumed 1,276 Employee obligations assumed 100 Asset retirement obligations assumed 9,614 Deferred tax liabilities 2,819 Total liabilities assumed 20,308 Total consideration paid and liabilities assumed $ 88,006 Allocation to acquired assets: Proved oil and gas properties (1) 87,672 Vehicles 165 Deposit account 169 Total allocation to acquired assets $ 88,006 (1) Included in the above purchase price adjustments is settlement for oil in temporary storage in tank batteries at the leases. The Company does not separately account for oil in temporary storage until the oil is sold and title transfers to the purchaser. Consistent with the Company’s accounting policy and reporting of similar transactions this amount was recorded within Evaluated Properties on the Company’s condensed consolidated balance sheet. Liberty County, Texas Acquisition On May 3, 2022, the Company acquired certain operated oil and gas producing properties in Liberty County, Texas, adjacent to its existing assets in the area, for $ 1.0 1,022 0.2 0.5 East Texas Acquisition On July 27, 2022, the Company closed a purchase and sale agreement for the acquisition of properties from ETXENERGY, LLC (“ETXENERGY”). The properties are located in Henderson and Anderson Counties, Texas (the “East Texas Assets”). The properties consist of approximately 16,600 11.9 SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred as of the closing date: Cash $ 11,875 Purchase price adjustments (1,048 ) Transaction costs 63 Total consideration paid 10,890 Suspense accounts assumed 380 Asset retirement obligations assumed 1,689 Total liabilities assumed 2,069 Total consideration paid and liabilities assumed $ 12,959 Allocation to acquired assets: Proved oil and gas properties $ 12,959

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	3. REVENUE RECOGNITION The Company’s operated oil production is sold at the delivery point specified in the contract. The Company collects an agreed-upon index price, net of pricing differentials. The purchaser takes custody, title and risk of loss of the oil at the delivery point; therefore, control passes at the delivery point. The Company does not separately account for oil in temporary storage at the site of production prior to its transfer to the purchaser. The Company recognizes revenue at the net price received when control transfers to the purchaser. Natural gas and natural gas liquid (“NGL”) are sold at the lease location, which is generally when control of the natural gas and NGL transfers to the purchaser, and revenue is recognized as the amount received from the purchaser. The Company does not disclose the values of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with Accounting Standards Codification (ASC) 606. The exemption applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to the remaining performance obligations is not required. The Company reports revenue as its proportionate share of the gross amount received from the purchasers before taking into account transportation costs. Production taxes are reported separately, and transportation costs are included in lease operating expense in the accompanying condensed consolidated statements of operations. The Company’s non-operated revenues are derived from its interest in the sales of oil and natural gas production. The sales of oil and natural gas are made under contracts that operators of the wells have negotiated with third-party customers. Oil and natural gas production is typically sold at delivery points to various purchasers under contract terms that are common in the oil and natural gas industry. Regardless of the contract type, the terms of these contracts compensate the well operators for the value of the oil and natural gas at specified prices, and then the well operators remit payment to the Company for its share in the value of the oil and natural gas sold. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received; however, differences have been, and are expected to be, insignificant. Accordingly, the variable consideration is not constrained. As a non-operator of its oil and natural gas properties, the Company records its share of the revenues and expenses based upon the information provided by the operators within the revenue statements. The Company disaggregates revenues from its share of revenue from the sale of oil and natural gas and liquids by region. The Company’s revenues in its Rockies, West Texas, South Texas and Gulf Coast, and Mid-Continent regions for the three and six months ended June 30, 2023 and 2022, are presented in the following table: SCHEDULE OF DISAGGREGATED REVENUE 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Revenue: Rockies Oil $ 2,470 $ 4,587 $ 4,808 $ 7,978 Natural gas and liquids 128 343 216 536 Total $ 2,598 $ 4,930 $ 5,024 $ 8,514 West Texas, South Texas, and Gulf Coast Oil $ 3,022 $ 4,823 $ 5,978 $ 8,604 Natural gas and liquids 112 475 321 680 Total $ 3,134 $ 5,298 $ 6,299 $ 9,284 Mid-Continent Oil $ 1,536 $ 1,825 $ 3,338 $ 2,584 Natural gas and liquids 710 1,427 1,590 1,970 Total $ 2,246 $ 3,252 $ 4,928 $ 4,554 Combined Total $ 7,978 $ 13,480 $ 16,251 $ 22,352 Significant concentrations of credit risk The Company has exposure to credit risk in the event of non-payment of oil and natural gas receivables by purchasers of its operated oil and natural gas properties and the joint interest operators of the Company’s non-operated oil and natural gas properties. The following table presents the purchasers that accounted for 10% or more of the Company’s total oil and natural gas revenue for at least one of the periods presented: SCHEDULE OF CONCENTRATION OF CREDIT RISK 2023 2022 Six Months Ended 2023 2022 Purchaser A 23 % 23 % Purchaser B 18 % 22 % Concentration risk percentage 18 % 22 %

LEASES

LEASES	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
LEASES	4. LEASES The Company’s operating lease right-of-use assets and lease liabilities are recognized at their discounted present value under the following captions in the condensed consolidated balance sheets at June 30, 2023 and December 31, 2022: SCHEDULE OF CONSOLIDATED BALANCE SHEET June 30, 2023 December 31, 2022 (in thousands) Right-of-use assets $ 773 $ 868 Lease liabilities Current lease obligation $ 176 $ 189 Long-term lease obligation 704 794 Total lease liabilities $ 880 $ 983 The Company recognizes lease expense on a straight-line basis excluding short-term and variable lease payments, which are recognized as incurred. Short-term lease cost represents payments for office leases with original terms less than one year. Beginning in March 2020, the Company subleased its Denver, Colorado office and recognized sublease income as a reduction of rent expense. The term of the sublease was through the term of the Company’s Denver office lease, which terminated on January 31, 2023. Following are the amounts recognized as components of rental expense for the three and six months ended June 30, 2023 and 2022: SCHEDULE OF LEASE COSTS 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 49 $ 69 $ 114 $ 100 Short-term lease cost 184 2 453 4 Sublease income - (17 ) - (33 ) Total lease costs $ 233 $ 54 $ 567 $ 71 The Company’s Houston office operating lease does not contain implicit interest rates that can be readily determined; therefore, the Company used the incremental borrowing rates in effect at the time the Company entered into the leases. SCHEDULE OF WEIGHTED AVERAGE LEASE As of June 30, 2023 2022 (in thousands) Weighted average lease term (years) 4.4 5.1 Weighted average discount rate 4.25 % 4.60 % Maturity of operating lease liabilities with terms of one year or more as of June 30, 2023 are presented in the following table: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS June 30, 2023 (in thousands) 2023 $ 105 2024 213 2025 218 2026 224 2027 210 Total lease payments $ 970 Less: imputed interest (90 ) Total lease liability $ 880

OIL AND NATURAL GAS PRODUCTION

OIL AND NATURAL GAS PRODUCTION ACTIVITIES	6 Months Ended
	Jun. 30, 2023
Extractive Industries [Abstract]
OIL AND NATURAL GAS PRODUCTION ACTIVITIES	5. OIL AND NATURAL GAS PRODUCTION ACTIVITIES Divestitures During the six months ended June 30, 2023 there were no 1.2 30 4,500 1.1 Ceiling Test and Impairment The reserves used in the ceiling test incorporate assumptions regarding pricing and discount rates over which management has no influence in the determination of present value. In the calculation of the ceiling test as of June 30, 2023, the Company used $ 82.82 4.76 10 For the three and six months ended June 30, 2023, and 2022, the Company did not record ceiling test write downs of its oil and natural gas properties.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
DEBT	6. DEBT On January 5, 2022, the Company entered into a four-year credit agreement (“Credit Agreement”) with Firstbank Southwest (“Firstbank”) as administrative agent for one or more lenders (the “Lenders”), which provided for a revolving line of credit with an initial borrowing base of $ 15 100 15 20 Under the Credit Agreement, revolving loans may be borrowed, repaid and re-borrowed until January 5, 2026, when all outstanding amounts must be repaid. Interest on the outstanding amounts under the Credit Agreement will accrue at an interest rate equal to (a) the greatest of (i) the prime rate in effect on such day, and (b) the Federal Funds rate in effect on such day (as determined in the Credit Agreement) plus 0.50%, and an applicable margin that ranges between 0.25% to 1.25% depending on utilization of the amount of the borrowing base (the “Applicable Margin”). Interest expense recognized on the Credit Agreement and the weighted average interest rates for the three and six months ended June 30, 2023 and 2022 SCHEDULE OF DEBT Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Interest expense $ 267 $ 56 $ 519 $ 100 Weighted average interest rate 8.9 % 4.7 % 8.7 % 4.5 % The Credit Agreement contains various restrictive covenants and compliance requirements, which include: (i) maintenance of certain financial ratios, as defined in the Credit Agreement tested quarterly, that limit the Company’s ratio of total debt to EBITDAX (as defined in the Credit Agreement) to 3:1 and require its ratio of consolidated current assets to consolidated current liabilities (as each is described in the Credit Agreement) to remain at 1:1 or higher; (ii) restrictions on making restricted payments as defined in the Credit Agreement, including the payment of cash dividends and repurchases of equity interests (subject to certain limited rights to make restricted payments as long as no event of default has occurred, or would result from the restricted payment, certain financial ratios are met and the borrowing availability after giving pro forma effect to any borrowing to be made on the date of the restricted payment is greater than, or equal to, 20% of the then existing borrowing base); (iii) limits on the incurrence of additional indebtedness; (iv) a prohibition on the entry into commodity swap contracts exceeding a specified percentage of our expected production; and (v) restrictions on the disposition of assets. As of June 30, 2023, the borrowing base was $ 20 The amount outstanding on the Credit Agreement as of June 30, 2023 and December 31, 2022, was $ 12.0

COMMODITY DERIVATIVES

COMMODITY DERIVATIVES	6 Months Ended
	Jun. 30, 2023
Commodity Derivatives
COMMODITY DERIVATIVES	7. COMMODITY DERIVATIVES The Company’s results of operations and cash flows are affected by changes in market prices for crude oil and natural gas. To manage a portion of its exposure to price volatility from producing crude oil and natural gas, the Company may enter into commodity derivative contracts to protect against price declines in future periods. The Company does not enter into derivative contracts for speculative purposes. The Company does not currently apply hedge accounting. Accordingly, changes in the fair value of the derivative contracts are recorded in the condensed consolidated statements of operations and are included as a non-cash adjustment to net income in the operating activities section in the condensed consolidated statement of cash flows. On January 5, 2022, the Company and NextEra Energy Marketing LLC (“NextEra”) entered into an International Swap Dealers Association, Inc. Master Agreement and Schedule (the “Master Agreement”), facilitating the Company to enter into derivative contracts to manage the risk associated with its business relating to commodity prices. The Company’s obligations to NextEra under the Master Agreement are secured by liens and security interests which also secure the loans under the Credit Agreement on a pari passu and pro rata basis with the principal of such loans. The structure of the derivative contacts may include swaps, caps, floors, collars, locks, forwards and options. The Company’s entry into and the obligations of the Company under the Master Agreement were required conditions to the January 2022 acquisition closing, pursuant to which the Company was required to assume and novate certain hedges which had a mark to market loss of approximately $ 3.1 SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS Collars Quantity Weighted Average Prices Commodity/ Index/ Maturity Period (Bbls) (1) Floors Ceilings NYMEX WTI Crude Oil 2023 Contracts: Third quarter 2023 52,600 $ 60.00 $ 81.04 Fourth quarter 2023 51,200 $ 60.00 $ 81.04 Total 2023 103,800 $ 60.00 $ 81.04 (1) “Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons. The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets by category: SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS June 30, 2023 December 31, 2022 (in thousands) Derivative assets: Current assets $ 8 $ - Total derivative assets $ 8 $ - Derivative liabilities: Current liabilities $ - $ 1,694 Total derivative liabilities $ - $ 1,694 As of June 30, 2023, all commodity derivative contracts held by the Company were subject to master netting arrangements with its counterparty. The terms of the Company’s derivative agreements provide for the offsetting of amounts payable or receivable between it and the counterparty for contracts that settle on the same date. The Company’s agreements also provide that in the event of an early termination, the counterparty has the right to offset amounts owed or owing under that and any other agreement. The Company’s accounting policy is to offset positions that settle on the same date with the same counterparty. See Note 13 Fair Value Measurements The following table summarizes the commodity components of the derivative settlement gain (loss) as well as the components of the net derivative loss line-item presentation in the accompanying condensed consolidated statement of operations: SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Derivative settlement losses: Oil contracts $ (89 ) $ (2,590 ) $ (466 ) $ (4,137 ) Gas contracts - (239 ) (28 ) (350 ) Total derivative settlement losses $ (89 ) $ (2,829 ) $ (494 ) $ (4,487 ) Total net derivative loss: Oil contracts $ 288 $ (2,068 ) $ 1,148 $ (8,364 ) Gas contracts - (64 ) 60 (605 ) Total net derivative gains (losses) $ 288 $ (2,132 ) $ 1,208 $ (8,969 )

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Contingencies The Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. In the opinion of management, the anticipated results of any pending litigation and claims are not expected to have a material effect on the results of operations, the financial position, or the cash flows of the Company.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2023
Shareholders’ equity:
SHAREHOLDERS’ EQUITY	9. SHAREHOLDERS’ EQUITY At June 30, 2023, the Company had 25,071,372 245,000,000 5,000,000 241 163,300 19,905,736 Stock Options Plans From time to time, the Company may grant stock options under its incentive plan covering shares of common stock to employees of the Company. Stock options, when exercised, are settled through the payment of the exercise price in exchange for new shares of stock underlying the option. These awards typically expire ten years from the grant date. For the three and six months ended June 30, 2023 and 2022, there was no No 2,913 SUMMARY OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE June 30, 2023 December 31, 2022 Shares Price Shares Price Stock options outstanding and exercisable 28,122 $ 54.03 28,122 $ 54.03 The following table summarizes information for stock options outstanding and for stock options exercisable at June 30, 2023: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Weighted Remaining Weighted Number of Price Average Contractual Number of Average Shares Low High Price (years) Shares Price 16,500 $ 7.20 $ 11.60 $ 10.00 4.3 16,500 $ 10.00 10,622 90.00 124.80 106.20 0.8 10,622 106.20 1,000 226.20 226.20 226.20 1.2 1,000 226.20 28,122 $ 7.20 $ 226.20 $ 54.03 2.9 28,122 $ 54.03 Restricted Stock The Company grants restricted stock under its incentive plan covering shares of common stock to employees and directors of the Company. In January 2023, 796,434 100,000 The following table presents the changes in non-vested, time-based restricted stock awards to all employees and directors for the six months ended June 30, 2023: SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS Shares Weighted-Avg. Non-vested restricted stock as of December 31, 2022 687,000 $ 3.79 Granted 896,434 $ 2.21 Vested (273,000 ) $ 3.78 Forfeited (60,000 ) $ 2.30 Non-vested restricted stock as of June 30, 2023 1,250,434 $ 2.73 For the three and six months ended June 30, 2023, the Company recognized $ 0.6 1.3 0.6 2.1 1.5 1.9 Dividends During the three-month periods ended March 31 and June 30, 2023, the Company’s board of directors approved the declaration and payment of quarterly cash dividends of $ 0.0225 1.2 0.6 Share Repurchase Program On April 26, 2023, the Board of Directors of the Company authorized and approved a share repurchase program for up to $ 5.0 5.0 Under the stock repurchase program, shares are repurchased from time to time in the open market or through negotiated transactions at prevailing market prices, or by other means in accordance with federal securities laws. Repurchases are made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. The repurchase program is funded using the Company’s working capital. The repurchased shares are cancelled and therefore will not be held in treasury or reissued. During the three months ended June 30, 2023, the Company paid $ 0.2 163,300 1.48

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Jun. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATIONS	10. ASSET RETIREMENT OBLIGATIONS The Company has asset retirement obligations (“AROs”) associated with the future plugging and abandonment of proved properties. Initially, the fair value of a liability for an ARO is recorded in the period in which the ARO is incurred with a corresponding increase in the carrying amount of the related asset. The liability is accreted to its present value each period and the capitalized cost is depleted over the life of the related asset. If the liability is settled for an amount other than the recorded amount, an adjustment to the full-cost pool is recognized. The Company had no assets that are restricted for the purpose of settling AROs. The Company recorded $ 9.6 0.5 1.7 See Note 2 Acquisitions In the fair value calculation for the ARO there are numerous assumptions and judgments, including the ultimate retirement cost, inflation factors, credit-adjusted risk-free discount rates, timing of retirement and changes in legal, regulatory, environmental, and political environments. To the extent future revisions to assumptions and judgments impact the present value of the existing ARO, a corresponding adjustment is made to the oil and natural gas property balance. The following is a reconciliation of the changes in the Company’s liabilities for asset retirement obligations as of June 30, 2023 and December 31, 2022: SCHEDULE OF ASSET RETIREMENT OBLIGATION June 30, 2023 December 31, 2022 (in thousands) Balance, beginning of year $ 15,442 $ 1,461 Acquired or incurred 11 11,811 Cost and life revisions (43 ) 1,825 Plugged (52 ) (407 ) Sold - (189 ) Accretion 536 941 Balance, end of period $ 15,894 $ 15,442

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	11. INCOME TAXES The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any. Each quarter the Company updates its estimate of the annual effective tax rate and makes a year-to-date adjustment to the provision. The Company’s effective tax rate was approximately 7 45 The Company’s income tax benefit for the six months ended June 30, 2022 includes a discrete income tax benefit of $ 2.4 Deferred taxes are recognized for the expected future tax consequences of temporary differences between the financial statement and tax basis of assets, liabilities, net operating losses and tax credit carry-forwards. We review our deferred tax assets (“DTAs”) and valuation allowance on a quarterly basis. As part of our review, we consider positive and negative evidence, including cumulative results in recent years. The Company recognizes, measures, and discloses uncertain tax positions whereby tax positions must meet a “more-likely-than-not” threshold to be recognized. During the three and six months ended June 30, 2023 and 2022, no adjustments were recognized for uncertain tax positions.

LOSS PER SHARE

LOSS PER SHARE	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
LOSS PER SHARE	12. LOSS PER SHARE Basic net loss per common share is calculated by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding for the respective period. Diluted net loss per common share is calculated by dividing adjusted net loss by the diluted weighted average number of common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for this calculation consist of stock options and unvested shares of restricted common stock, which are measured using the treasury stock method. When the Company recognizes a net loss, as was the case for the three and six months ended June 30, 2023 and the six months ended June 30, 2022, all potentially dilutive shares are anti-dilutive and are consequently excluded from the calculation of dilutive net loss per common share. The following table sets forth the calculation of basic and diluted net income (loss) per share for the three and six months ended June 30, 2023 and 2022: SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands except per share data) Net income (loss) $ (2,515 ) $ 122 $ (3,762 ) $ (3,262 ) Basic weighted average common shares outstanding 25,187 24,924 25,183 24,324 Dilutive effect of potentially dilutive securities - 341 - - Diluted weighted average common shares outstanding 25,187 25,265 25,183 24,324 Basic net income (loss) per share $ (0.10 ) $ 0.00 $ (0.15 ) $ (0.13 ) Diluted net income (loss) per share $ (0.10 ) $ 0.00 $ (0.15 ) $ (0.13 ) For the three and six months ended June 30, 2023 and 2022, potentially dilutive securities excluded from the calculation of weighted average shares because they were anti-dilutive are as follows: SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Stock options 28 30 28 30 Unvested shares of restricted stock 1,250 - 1,250 787 Total 1,278 30 1,278 817

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	13. FAIR VALUE MEASUREMENTS The Company’s fair value measurements are estimated pursuant to a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the hierarchy level. The three levels of inputs that may be used to measure fair value are defined as: Level 1 - Quoted prices for identical assets and liabilities traded in active exchange markets. Level 2 - Observable inputs other than Level 1 that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, or other observable inputs that can be corroborated by observable market data. Level 3 - Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company has processes and controls in place to estimate fair value. The Company performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. Where market information is not available to support internal valuations, independent reviews of the valuations are performed, and any material exposures are evaluated through a management review process. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The following is a description of the valuation methodologies used for complex financial instruments measured at fair value: Recurring Fair Value Measurements Commodity Derivative Instruments The Company measures the fair value of commodity derivative contracts using an income valuation technique based on the contract price of the underlying positions, crude oil and natural gas forward curves, discount rates, and Company or counterparty non-performance risk. The fixed-price swaps and collar derivative contracts are included in Level 2. The fair value of commodity derivative contracts and their presentation in our unaudited condensed consolidated balance sheet as of June 30, 2023 are presented below: SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES Quoted Prices Significant Other Significant Total Effect of Net Fair Value (in thousands) Assets Current: Commodity derivatives $ - $ 129 $ - $ 129 $ (121 ) $ 8 Liabilities Current: Commodity derivatives $ - $ (121 ) $ - $ (121 ) $ 121 $ - Net derivative instruments $ - $ 8 $ - $ 8 $ - $ 8 Marketable Equity Securities We measure the fair value of marketable equity securities based on quoted market prices obtained from independent pricing services. The Company has an investment in the marketable equity securities of Anfield Energy (“Anfield”), which it acquired as consideration for sales of certain mining operations. Anfield is traded in an active market under the trading symbol AEC:TSXV and has been classified as Level 1. SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES June 30, 2023 December 31, 2022 Current assets: Marketable equity securities Number of shares owned 2,421,180 2,421,180 Quoted market price $ 0.03771 $ 0.04429 Fair value of marketable equity securities $ 91,293 $ 107,234 Credit Facility The Company’s credit facility approximates fair value because the interest rate is variable and reflective of market rates. Other Financial Instruments The carrying value of financial instruments included in current assets and current liabilities approximate fair value due to the short-term nature of those instruments. Nonrecurring Fair Value Measurements Asset Retirement Obligations The Company measures the fair value of asset retirement obligations as of the date a well is acquired, the date a well begins drilling, or the date the Company revises its ARO assumptions. The Company’s estimated asset retirement obligation is based on historical experience in plugging and abandoning wells, estimated economic lives, estimated plugging and abandonment costs and federal and state regulatory requirements, all unobservable inputs, and therefore, are designated as Level 3 within the valuation hierarchy. The liability is discounted using the credit-adjusted risk-free rate estimated at the time the liability is incurred or revised. The credit adjusted risk-free rate used to discount the Company’s plugging and abandonment liabilities range from 7.30 9.75 Note 10 Asset Retirement Obligations Other Assets and Liabilities The Company evaluates the fair value on a non-recurring basis of properties acquired in asset acquisitions using inputs that are not observable in the market and are therefore designated as Level 3 inputs within the fair value hierarchy. The Company evaluated the fair value of its January 2022 asset acquisition based on discounted future cash flows using estimated production at estimated prices based on NYMEX strip pricing adjusted for differentials, operating costs, production taxes and development costs, all discounted at 10 87.7 7.3 The Company evaluates the fair value on a non-recurring basis of its 13.84

OTHER CURRENT ASSETS AND ACCOUN

OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	14. OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Other Current Assets The following table presents the components of other current asset s s SCHEDULE OF OTHER CURRENT ASSETS June 30, 2023 December 31, 2022 (in thousands) Prepaid expense $ 550 $ 138 Joint interest billings receivable 352 332 Income tax receivable 33 50 Other 38 38 Total other current assets $ 973 $ 558 Accounts Payable and Accrued Liabilities The following table presents the components of accounts payable and accrued liabilities as of the dates indicated: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, 2023 December 31, 2022 (in thousands) Accounts payable $ 2,538 $ 2,566 Operating expense and oil and gas property accruals 1,136 1,378 Revenue payables 3,983 3,503 Production taxes payable 370 319 Insurance premium financing 422 54 Other 15 12 Total accounts payable and accrued expenses $ 8,464 $ 7,832

SUPPLEMENTAL DISCLOSURES OF CAS

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	6 Months Ended
	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	15. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 2023 2022 Six Months Ended June 30, 2023 2022 (in thousands) Cash paid for interest $ (558 ) $ (86 ) Investing activities: Change in capital expenditure accruals $ 50 $ 453 Change in accrual for acquisition costs - (546 ) Common stock issued for acquisition of properties - 64,694 Assumption of commodity derivative liability in acquisition of properties - 3,152 Assumption of debt in acquisition of properties - 3,347 Assumption of suspense accounts in acquisition of properties - 1,276 Addition of operating lease liability and right of use asset - 953 Asset retirement obligations (32 ) 10,302 Financing activities: Financing of insurance premiums with note payable $ 654 $ 588

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS Under the full-cost method of accounting, the net book value of proved oil and gas properties, less related deferred income taxes, may not exceed a calculated “ceiling.” The ceiling limitation is the estimated after-tax future net cash flows from proved oil and gas reserves. Estimated future net cash flows are calculated using the unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months, adjusted for location and quality differentials, held flat for the life of the production (except where prices are defined by contractual arrangements), less estimated operating costs, production taxes and future development costs, all discounted at 10 percent per annum. Future cash outflows associated with settling accrued asset retirement obligations are excluded from the calculation. As of June 30, 2023, no ceiling test write-down of our oil and gas assets was necessary. However, we expect to record a write-down of our oil and gas properties in the third quarter of 2023 due to lower commodity prices used in the calculation of the ceiling test as higher third quarter 2022 realized prices will be removed from the ceiling calculation and replaced with lower third quarter 2023 commodity prices. Depending on actual commodity prices, estimated price differentials, lease operating costs, revisions to reserve estimates, and the amount and timing of capital expenditures, the write-down could be approximately $ 3 4

ORGANIZATION, OPERATIONS AND _2

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	Organization and Operations U.S. Energy Corp. (collectively with its wholly-owned subsidiaries, Energy One LLC (“Energy One”) and New Horizon Resources LLC (“New Horizon Resources”), referred to as the “Company” in these Notes to Unaudited Condensed Consolidated Financial Statements) is incorporated in the State of Delaware. The Company’s principal business activities are focused on the acquisition and development of onshore oil and natural gas properties in the United States, which the Company considers a single operating segment. Our principal properties and operations are in the Rockies region (Montana, Wyoming and North Dakota), the Mid-Continent (Oklahoma, Kansas and North and East Texas), and the West Texas, South Texas, and Gulf Coast regions.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on April 13, 2023. Our financial condition as of June 30, 2023, and operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the financial condition and results of operations that may be expected for any future interim period or for the year ending December 31, 2023.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the fair value of oil and gas properties acquired, oil and natural gas reserves that are used in the calculation of depreciation, depletion, amortization, and impairment of the carrying value of evaluated oil and natural gas properties; realizability of unevaluated properties; production and commodity price estimates used to record accrued oil and natural gas sales receivables; future prices of commodities used in the valuation of commodity derivative contracts; and the cost and timing of future asset retirement obligations. The Company evaluates its estimates on an on-going basis and bases its estimates on historical experience and on various other assumptions the Company believes to be reasonable. Due to inherent uncertainties, including the future prices of oil and natural gas, these estimates could change in the near term and such changes could be material.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13 to Topic 326, Financial Instruments-Credit Losses
Principles of Consolidation	Principles of Consolidation The accompanying financial statements have been prepared in conformity with GAAP and include the accounts of U.S. Energy Corp. and its wholly-owned subsidiaries Energy One and New Horizon Resources. U.S. Energy Corp. accounts for its share of oil and gas exploration and production activities, in which it has a direct working interest, by reporting its proportionate share of assets, liabilities, revenues, costs, and cash flows within the relevant lines on the balance sheets, statements of operations, and statements of cash flows. All inter-company balances and transactions have been eliminated in consolidation.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Seller [Member]
Business Acquisition [Line Items]
SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED	SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred as of the Closing Date: Cash $ 1,250 Value of 19,905,736 64,694 Purchase price adjustments 487 Transaction costs 1,267 Total consideration paid 67,698 Debt assumed 3,347 Commodity derivative liabilities assumed 3,152 Suspense accounts assumed 1,276 Employee obligations assumed 100 Asset retirement obligations assumed 9,614 Deferred tax liabilities 2,819 Total liabilities assumed 20,308 Total consideration paid and liabilities assumed $ 88,006 Allocation to acquired assets: Proved oil and gas properties (1) 87,672 Vehicles 165 Deposit account 169 Total allocation to acquired assets $ 88,006 (1) Included in the above purchase price adjustments is settlement for oil in temporary storage in tank batteries at the leases. The Company does not separately account for oil in temporary storage until the oil is sold and title transfers to the purchaser. Consistent with the Company’s accounting policy and reporting of similar transactions this amount was recorded within Evaluated Properties on the Company’s condensed consolidated balance sheet.
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED	SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED Amount (in thousands) Amounts incurred as of the closing date: Cash $ 11,875 Purchase price adjustments (1,048 ) Transaction costs 63 Total consideration paid 10,890 Suspense accounts assumed 380 Asset retirement obligations assumed 1,689 Total liabilities assumed 2,069 Total consideration paid and liabilities assumed $ 12,959 Allocation to acquired assets: Proved oil and gas properties $ 12,959

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATED REVENUE	SCHEDULE OF DISAGGREGATED REVENUE 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Revenue: Rockies Oil $ 2,470 $ 4,587 $ 4,808 $ 7,978 Natural gas and liquids 128 343 216 536 Total $ 2,598 $ 4,930 $ 5,024 $ 8,514 West Texas, South Texas, and Gulf Coast Oil $ 3,022 $ 4,823 $ 5,978 $ 8,604 Natural gas and liquids 112 475 321 680 Total $ 3,134 $ 5,298 $ 6,299 $ 9,284 Mid-Continent Oil $ 1,536 $ 1,825 $ 3,338 $ 2,584 Natural gas and liquids 710 1,427 1,590 1,970 Total $ 2,246 $ 3,252 $ 4,928 $ 4,554 Combined Total $ 7,978 $ 13,480 $ 16,251 $ 22,352
SCHEDULE OF CONCENTRATION OF CREDIT RISK	SCHEDULE OF CONCENTRATION OF CREDIT RISK 2023 2022 Six Months Ended 2023 2022 Purchaser A 23 % 23 % Purchaser B 18 % 22 % Concentration risk percentage 18 % 22 %

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
SCHEDULE OF CONSOLIDATED BALANCE SHEET	SCHEDULE OF CONSOLIDATED BALANCE SHEET June 30, 2023 December 31, 2022 (in thousands) Right-of-use assets $ 773 $ 868 Lease liabilities Current lease obligation $ 176 $ 189 Long-term lease obligation 704 794 Total lease liabilities $ 880 $ 983
SCHEDULE OF LEASE COSTS	SCHEDULE OF LEASE COSTS 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Operating lease cost $ 49 $ 69 $ 114 $ 100 Short-term lease cost 184 2 453 4 Sublease income - (17 ) - (33 ) Total lease costs $ 233 $ 54 $ 567 $ 71
SCHEDULE OF WEIGHTED AVERAGE LEASE	The Company’s Houston office operating lease does not contain implicit interest rates that can be readily determined; therefore, the Company used the incremental borrowing rates in effect at the time the Company entered into the leases. SCHEDULE OF WEIGHTED AVERAGE LEASE As of June 30, 2023 2022 (in thousands) Weighted average lease term (years) 4.4 5.1 Weighted average discount rate 4.25 % 4.60 %
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS	Maturity of operating lease liabilities with terms of one year or more as of June 30, 2023 are presented in the following table: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS June 30, 2023 (in thousands) 2023 $ 105 2024 213 2025 218 2026 224 2027 210 Total lease payments $ 970 Less: imputed interest (90 ) Total lease liability $ 880

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
SCHEDULE OF DEBT	SCHEDULE OF DEBT Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Interest expense $ 267 $ 56 $ 519 $ 100 Weighted average interest rate 8.9 % 4.7 % 8.7 % 4.5 %

COMMODITY DERIVATIVES (Tables)

COMMODITY DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2023
Commodity Derivatives
SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS	SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS Collars Quantity Weighted Average Prices Commodity/ Index/ Maturity Period (Bbls) (1) Floors Ceilings NYMEX WTI Crude Oil 2023 Contracts: Third quarter 2023 52,600 $ 60.00 $ 81.04 Fourth quarter 2023 51,200 $ 60.00 $ 81.04 Total 2023 103,800 $ 60.00 $ 81.04 (1) “Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.
SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS	The following table details the fair value of commodity derivative contracts recorded in the accompanying balance sheets by category: SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS June 30, 2023 December 31, 2022 (in thousands) Derivative assets: Current assets $ 8 $ - Total derivative assets $ 8 $ - Derivative liabilities: Current liabilities $ - $ 1,694 Total derivative liabilities $ - $ 1,694
SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS	The following table summarizes the commodity components of the derivative settlement gain (loss) as well as the components of the net derivative loss line-item presentation in the accompanying condensed consolidated statement of operations: SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Derivative settlement losses: Oil contracts $ (89 ) $ (2,590 ) $ (466 ) $ (4,137 ) Gas contracts - (239 ) (28 ) (350 ) Total derivative settlement losses $ (89 ) $ (2,829 ) $ (494 ) $ (4,487 ) Total net derivative loss: Oil contracts $ 288 $ (2,068 ) $ 1,148 $ (8,364 ) Gas contracts - (64 ) 60 (605 ) Total net derivative gains (losses) $ 288 $ (2,132 ) $ 1,208 $ (8,969 )

SHAREHOLDERS_ EQUITY (Tables)

SHAREHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
Shareholders’ equity:
SUMMARY OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE	SUMMARY OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE June 30, 2023 December 31, 2022 Shares Price Shares Price Stock options outstanding and exercisable 28,122 $ 54.03 28,122 $ 54.03
SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE	The following table summarizes information for stock options outstanding and for stock options exercisable at June 30, 2023: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Exercise Weighted Remaining Weighted Number of Price Average Contractual Number of Average Shares Low High Price (years) Shares Price 16,500 $ 7.20 $ 11.60 $ 10.00 4.3 16,500 $ 10.00 10,622 90.00 124.80 106.20 0.8 10,622 106.20 1,000 226.20 226.20 226.20 1.2 1,000 226.20 28,122 $ 7.20 $ 226.20 $ 54.03 2.9 28,122 $ 54.03
SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS	The following table presents the changes in non-vested, time-based restricted stock awards to all employees and directors for the six months ended June 30, 2023: SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS Shares Weighted-Avg. Non-vested restricted stock as of December 31, 2022 687,000 $ 3.79 Granted 896,434 $ 2.21 Vested (273,000 ) $ 3.78 Forfeited (60,000 ) $ 2.30 Non-vested restricted stock as of June 30, 2023 1,250,434 $ 2.73

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2023
Asset Retirement Obligation Disclosure [Abstract]
SCHEDULE OF ASSET RETIREMENT OBLIGATION	The following is a reconciliation of the changes in the Company’s liabilities for asset retirement obligations as of June 30, 2023 and December 31, 2022: SCHEDULE OF ASSET RETIREMENT OBLIGATION June 30, 2023 December 31, 2022 (in thousands) Balance, beginning of year $ 15,442 $ 1,461 Acquired or incurred 11 11,811 Cost and life revisions (43 ) 1,825 Plugged (52 ) (407 ) Sold - (189 ) Accretion 536 941 Balance, end of period $ 15,894 $ 15,442

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE	The following table sets forth the calculation of basic and diluted net income (loss) per share for the three and six months ended June 30, 2023 and 2022: SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands except per share data) Net income (loss) $ (2,515 ) $ 122 $ (3,762 ) $ (3,262 ) Basic weighted average common shares outstanding 25,187 24,924 25,183 24,324 Dilutive effect of potentially dilutive securities - 341 - - Diluted weighted average common shares outstanding 25,187 25,265 25,183 24,324 Basic net income (loss) per share $ (0.10 ) $ 0.00 $ (0.15 ) $ (0.13 ) Diluted net income (loss) per share $ (0.10 ) $ 0.00 $ (0.15 ) $ (0.13 )
SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES	For the three and six months ended June 30, 2023 and 2022, potentially dilutive securities excluded from the calculation of weighted average shares because they were anti-dilutive are as follows: SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) Stock options 28 30 28 30 Unvested shares of restricted stock 1,250 - 1,250 787 Total 1,278 30 1,278 817

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES	The Company measures the fair value of commodity derivative contracts using an income valuation technique based on the contract price of the underlying positions, crude oil and natural gas forward curves, discount rates, and Company or counterparty non-performance risk. The fixed-price swaps and collar derivative contracts are included in Level 2. The fair value of commodity derivative contracts and their presentation in our unaudited condensed consolidated balance sheet as of June 30, 2023 are presented below: SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES Quoted Prices Significant Other Significant Total Effect of Net Fair Value (in thousands) Assets Current: Commodity derivatives $ - $ 129 $ - $ 129 $ (121 ) $ 8 Liabilities Current: Commodity derivatives $ - $ (121 ) $ - $ (121 ) $ 121 $ - Net derivative instruments $ - $ 8 $ - $ 8 $ - $ 8
SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES	SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES June 30, 2023 December 31, 2022 Current assets: Marketable equity securities Number of shares owned 2,421,180 2,421,180 Quoted market price $ 0.03771 $ 0.04429 Fair value of marketable equity securities $ 91,293 $ 107,234

OTHER CURRENT ASSETS AND ACCO_2

OTHER CURRENT ASSETS AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
SCHEDULE OF OTHER CURRENT ASSETS	The following table presents the components of other current asset s s SCHEDULE OF OTHER CURRENT ASSETS June 30, 2023 December 31, 2022 (in thousands) Prepaid expense $ 550 $ 138 Joint interest billings receivable 352 332 Income tax receivable 33 50 Other 38 38 Total other current assets $ 973 $ 558
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	The following table presents the components of accounts payable and accrued liabilities as of the dates indicated: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, 2023 December 31, 2022 (in thousands) Accounts payable $ 2,538 $ 2,566 Operating expense and oil and gas property accruals 1,136 1,378 Revenue payables 3,983 3,503 Production taxes payable 370 319 Insurance premium financing 422 54 Other 15 12 Total accounts payable and accrued expenses $ 8,464 $ 7,832

SUPPLEMENTAL DISCLOSURES OF C_2

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]
SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 2023 2022 Six Months Ended June 30, 2023 2022 (in thousands) Cash paid for interest $ (558 ) $ (86 ) Investing activities: Change in capital expenditure accruals $ 50 $ 453 Change in accrual for acquisition costs - (546 ) Common stock issued for acquisition of properties - 64,694 Assumption of commodity derivative liability in acquisition of properties - 3,152 Assumption of debt in acquisition of properties - 3,347 Assumption of suspense accounts in acquisition of properties - 1,276 Addition of operating lease liability and right of use asset - 953 Asset retirement obligations (32 ) 10,302 Financing activities: Financing of insurance premiums with note payable $ 654 $ 588

SUMMARY OF AMOUNTS INCURRED FOR

SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED (Details) - USD ($) $ in Thousands				3 Months Ended
		Jul. 27, 2022	Jan. 05, 2022	Mar. 31, 2022
Business Acquisition [Line Items]
Value of 19,905,736 shares issued				$ 64,694
Sellers [Member]
Business Acquisition [Line Items]
Cash			$ 1,250
Value of 19,905,736 shares issued			64,694
Purchase price adjustments			487
Transaction costs			1,267
Total consideration paid			67,698
Debt assumed			3,347
Commodity derivative liabilities assumed			3,152
Suspense accounts assumed			1,276
Employee obligations assumed			100
Asset retirement obligations assumed			9,614
Deferred tax liabilities			2,819
Total liabilities assumed			20,308
Total consideration paid and liabilities assumed			88,006
Proved oil and gas properties	[1]		87,672
Vehicles			165
Deposit account			169
Total allocation to acquired assets			$ 88,006
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
Cash		$ 11,875
Purchase price adjustments		(1,048)
Transaction costs		63
Total consideration paid		10,890
Suspense accounts assumed		380
Asset retirement obligations assumed		1,689
Total liabilities assumed		2,069
Total consideration paid and liabilities assumed		12,959
Proved oil and gas properties	[2]	$ 12,959
[1]Included in the above purchase price adjustments is settlement for oil in temporary storage in tank batteries at the leases. The Company does not separately account for oil in temporary storage until the oil is sold and title transfers to the purchaser. Consistent with the Company’s accounting policy and reporting of similar transactions this amount was recorded within Evaluated Properties on the Company’s condensed consolidated balance sheet.[2]“Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.

SUMMARY OF AMOUNTS INCURRED F_2

SUMMARY OF AMOUNTS INCURRED FOR ASSETS ACQUIRED (Details) (Parenthetical)	Jan. 05, 2022 shares
Sellers [Member]
Business Acquisition [Line Items]
Stock issued during period, shares, acquisitions	19,905,736

ACQUISITIONS (Details Narrative

ACQUISITIONS (Details Narrative)				3 Months Ended	6 Months Ended
	Jul. 27, 2022 USD ($) a	May 03, 2022 USD ($) a	Jan. 05, 2022 USD ($) shares	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) a	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jul. 26, 2022 a	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions				$ 64,694,000
Repayment of debt						$ 3,847,000
Asset retirement obligation	$ 1,700,000	$ 500,000	$ 9,600,000		$ 15,894,000		$ 15,442,000		$ 1,461,000
Area of land | a					4,500			13.84
Oil and Gas Properties [Member]
Business Acquisition [Line Items]
Asset retirement obligation		500,000
Payments to acquire oil and gas property		$ 1,000,000
Area of land | a		1,022
Suspense account		$ 200,000
Wells and Gathering Systems [Member]
Business Acquisition [Line Items]
Area of land | a	16,600
Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Repayment of debt			3,300,000
Asset retirement obligation			3,100,000
Lubbock [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 125,000
Stock Issued During Period, Shares, Acquisitions | shares			6,568,828
Banner [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 1,000,000
Stock Issued During Period, Shares, Acquisitions | shares			6,790,524
Consideration liability for debt			$ 3,300,000
Amount of Ineffectiveness on Net Investment Hedges			3,100,000
Synergy [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 125,000
Stock Issued During Period, Shares, Acquisitions | shares			6,546,384
Sellers [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 64,694,000
Stock Issued During Period, Shares, Acquisitions | shares			19,905,736
Assets purchase price			$ 1,250,000
Sellers [Member] | Purchase and Sale Agreement [Member]
Business Acquisition [Line Items]
Stock Issued During Period, Value, Acquisitions			$ 64,700,000
Stock Issued During Period, Shares, Acquisitions | shares			19,905,736
AggregatePurchasePriceOfBusinessAssets			$ 66,400,000
Assets purchase price			1,250,000
Adjustment to purchase price of assets			$ 500,000
ETXEnergy LLC [Member]
Business Acquisition [Line Items]
Assets purchase price	$ 11,875,000

SCHEDULE OF DISAGGREGATED REVEN

SCHEDULE OF DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Combined Total	$ 7,978	$ 13,480	$ 16,251	$ 22,352
Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	7,028	11,334	14,124	19,167
Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	950	2,146	2,127	3,185
Rockies [Member]
Disaggregation of Revenue [Line Items]
Combined Total	2,598	4,930	5,024	8,514
Rockies [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	2,470	4,587	4,808	7,978
Rockies [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	128	343	216	536
West Texas South Texas Gulf Coast [Member]
Disaggregation of Revenue [Line Items]
Combined Total	3,134	5,298	6,299	9,284
West Texas South Texas Gulf Coast [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	3,022	4,823	5,978	8,604
West Texas South Texas Gulf Coast [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	112	475	321	680
Mid-Continent [Member]
Disaggregation of Revenue [Line Items]
Combined Total	2,246	3,252	4,928	4,554
Mid-Continent [Member] | Oil [Member]
Disaggregation of Revenue [Line Items]
Combined Total	1,536	1,825	3,338	2,584
Mid-Continent [Member] | Natural Gas, Midstream [Member]
Disaggregation of Revenue [Line Items]
Combined Total	$ 710	$ 1,427	$ 1,590	$ 1,970

SCHEDULE OF CONCENTRATION OF CR

SCHEDULE OF CONCENTRATION OF CREDIT RISK (Details) - Revenue Benchmark [Member] - Product Concentration Risk [Member]	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Purchaser A [Member]
Product Information [Line Items]
Concentration risk percentage	23%	23%
Purchaser B [Member]
Product Information [Line Items]
Concentration risk percentage	18%	22%

SCHEDULE OF CONSOLIDATED BALANC

SCHEDULE OF CONSOLIDATED BALANCE SHEET (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Right-of-use assets	$ 773	$ 868
Current lease obligation	176	189
Long-term lease obligation	704	794
Total lease liabilities	$ 880	$ 983

SCHEDULE OF LEASE COSTS (Detail

SCHEDULE OF LEASE COSTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 49	$ 69	$ 114	$ 100
Short-term lease cost	184	2	453	4
Sublease income		(17)		(33)
Total lease costs	$ 233	$ 54	$ 567	$ 71

SCHEDULE OF WEIGHTED AVERAGE LE

SCHEDULE OF WEIGHTED AVERAGE LEASE (Details)	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Weighted average lease term (years)	4 years 4 months 24 days	5 years 1 month 6 days
Weighted average discount rate	4.25%	4.60%

SCHEDULE OF FUTURE MINIMUM LEAS

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 105
2024	213
2025	218
2026	224
2027	210
Total lease payments	970
Less: imputed interest	(90)
Total lease liability	$ 880	$ 983

OIL AND NATURAL GAS PRODUCTIO_2

OIL AND NATURAL GAS PRODUCTION ACTIVITIES (Details Narrative)	6 Months Ended
	Jun. 30, 2023 USD ($) a	Jul. 26, 2022 a
Reserve Quantities [Line Items]
Divestitures oil and gas properties	$ 0
Proceeds from Sale, Property, Held-for-Sale	$ 1,200,000
Non operated interest rate	30%
Area of Land | a	4,500	13.84
Payments to Acquire Other Productive Assets	$ 1,100,000
Discount rate	10%
Oil [Member]
Reserve Quantities [Line Items]
Reserves units of measure	82.82
Natural Gas [Member]
Reserve Quantities [Line Items]
Reserves units of measure	4.76

SCHEDULE OF DEBT (Details)

SCHEDULE OF DEBT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Disclosure [Abstract]
Interest expense	$ 267	$ 56	$ 519	$ 100
Weighted average interest rate	8.90%	4.70%	8.70%	4.50%

DEBT (Details Narrative)

DEBT (Details Narrative) - Credit Agreement [Member] - USD ($) $ in Millions		12 Months Ended
	Jan. 05, 2022	Jul. 26, 2023	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Line of credit current	$ 15			$ 12	$ 12
Line of credit facility, maximum borrowing capacity	$ 100
Line of credit facility, interest rate description	(a) the greatest of (i) the prime rate in effect on such day, and (b) the Federal Funds rate in effect on such day (as determined in the Credit Agreement) plus 0.50%, and an applicable margin that ranges between 0.25% to 1.25% depending on utilization of the amount of the borrowing base (the “Applicable Margin”). Interest expense recognized on the Credit Agreement and the weighted average interest rates for the three and six months ended June 30, 2023 and 2022
Line of credit compliance borrowing base amount			$ 20
Minimum [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 15
Maximum [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 20

SCHEDULE OF COMMODITY DERIVATIV

SCHEDULE OF COMMODITY DERIVATIVE CONTRACTS (Details) - Crude Oil 2023 Contract [Member] - Collars [Member]	6 Months Ended
	Jun. 30, 2023 $ / bbl bbl
Schedule of Investments [Line Items]
Proved Developed Reserves (Volume) | bbl	103,800	[1]
Derivative, Floor Price	60
Derivative, Cap Price	81.04
Third Quarter 2023 [Member]
Schedule of Investments [Line Items]
Proved Developed Reserves (Volume) | bbl	52,600	[1]
Derivative, Floor Price	60
Derivative, Cap Price	81.04
Fourth Quarter 2023 [Member]
Schedule of Investments [Line Items]
Proved Developed Reserves (Volume) | bbl	51,200	[1]
Derivative, Floor Price	60
Derivative, Cap Price	81.04
[1]“Bbl” refers to one stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.

SCHEDULE OF FAIR VALUE OF COMMO

SCHEDULE OF FAIR VALUE OF COMMODITY DERIVATIVE CONTRACTS (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Commodity Derivatives
Current assets	$ 8
Total derivative assets	8
Current liabilities		1,694
Total derivative liabilities		$ 1,694

SCHEDULE OF DERIVATIVE SETTLEME

SCHEDULE OF DERIVATIVE SETTLEMENT GAIN LOSS (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 05, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Offsetting Assets [Line Items]
Total derivative settlement losses		$ (89)	$ (2,829)	$ (494)	$ (4,487)
Total net derivative gains (losses)	$ 3,100	288	(2,132)	1,208	(8,969)
Oil Contracts [Member]
Offsetting Assets [Line Items]
Total derivative settlement losses		(89)	(2,590)	(466)	(4,137)
Total net derivative gains (losses)		288	(2,068)	1,148	(8,364)
Gas Contracts [Member]
Offsetting Assets [Line Items]
Total derivative settlement losses			(239)	(28)	(350)
Total net derivative gains (losses)			$ (64)	$ 60	$ (605)

COMMODITY DERIVATIVES (Details

COMMODITY DERIVATIVES (Details Narrative) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 05, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Commodity Derivatives
Derivative gain (loss)	$ 3,100	$ 288	$ (2,132)	$ 1,208	$ (8,969)

SUMMARY OF STOCK OPTIONS OUTSTA

SUMMARY OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Shareholders’ equity:
Stock options outstanding and exercisable, shares	28,122	28,122
Stock options outstanding and exercisable, price	$ 54.03	$ 54.03

SCHEDULE OF STOCK OPTIONS OUTST

SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	28,122
Options Outstanding, Exercise price range, Lower range	$ 7.20
Options Outstanding, Exercise price range, Upper range	226.20
Options Outstanding, Weighted Average Exercise Price	$ 54.03
Options Outstanding, Remaining Contractual Term (Years)	2 years 10 months 24 days
Options Exercisable, Number of shares | shares	28,122
Options Exercisable, Weighted Average Average Exercise Price	$ 54.03
Exercise Price One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	16,500
Options Outstanding, Exercise price range, Lower range	$ 7.20
Options Outstanding, Exercise price range, Upper range	11.60
Options Outstanding, Weighted Average Exercise Price	$ 10
Options Outstanding, Remaining Contractual Term (Years)	4 years 3 months 18 days
Options Exercisable, Number of shares | shares	16,500
Options Exercisable, Weighted Average Average Exercise Price	$ 10
Exercise Price Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	10,622
Options Outstanding, Exercise price range, Lower range	$ 90
Options Outstanding, Exercise price range, Upper range	124.80
Options Outstanding, Weighted Average Exercise Price	$ 106.20
Options Outstanding, Remaining Contractual Term (Years)	9 months 18 days
Options Exercisable, Number of shares | shares	10,622
Options Exercisable, Weighted Average Average Exercise Price	$ 106.20
Exercise Price Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options Outstanding, Number of shares | shares	1,000
Options Outstanding, Exercise price range, Lower range	$ 226.20
Options Outstanding, Exercise price range, Upper range	226.20
Options Outstanding, Weighted Average Exercise Price	$ 226.20
Options Outstanding, Remaining Contractual Term (Years)	1 year 2 months 12 days
Options Exercisable, Number of shares | shares	1,000
Options Exercisable, Weighted Average Average Exercise Price	$ 226.20

SCHEDULE OF NON-VESTED TIME- BA

SCHEDULE OF NON-VESTED TIME- BASED RESTRICTED STOCK AWARDS (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Shareholders’ equity:
Shares, Non-vested restricted stock, Begining balance | shares	687,000
Weighted-Avg. Grant Date Fair Value per Share, Non-vested restricted stock, Begining balance | $ / shares	$ 3.79
Shares, Granted | shares	896,434
Weighted-Avg. Grant Date Fair Value per Share, Granted | $ / shares	$ 2.21
Shares, Vested | shares	(273,000)
Weighted-Avg. Grant Date Fair Value per Share, Vested | $ / shares	$ 3.78
Shares, Forfeited | shares	(60,000)
Weighted-Avg. Grant Date Fair Value per Share, Forfeited | $ / shares	$ 2.30
Shares, Non-vested restricted stock, ending balance | shares	1,250,434
Weighted-Avg. Grant Date Fair Value per Share, Non-vested restricted stock, ending balance | $ / shares	$ 2.73

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended			6 Months Ended
	Apr. 26, 2023	Jun. 30, 2023	Jan. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jan. 05, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, shares outstanding		25,071,372		25,071,372			25,071,372		25,023,812
Common stock, shares authorized		245,000,000		245,000,000			245,000,000		245,000,000
Shares available for issuance		5,000,000		5,000,000			5,000,000
Payments for repurchase of shares				$ 241,000
Share repurchases				163,300
Common stock, shares issued		25,071,372		25,071,372			25,071,372		25,023,812	19,905,736
Share based compensation				$ 600,000		$ 600,000	$ 1,334,000	$ 2,109,000
Number of restricted stock granted							896,434
Share based compensation not yet recognized		$ 1,500,000		$ 1,500,000			$ 1,500,000
Share based compensation not yet recognized, recognition period							1 year 10 months 24 days
Cash dividend per share				$ 0.0225	$ 0.0225	$ 0.0225
Dividends and Interest Paid							$ 1,200,000	600,000
Cash				$ 241,000
Shares Issued, Price Per Share		$ 1.48		$ 1.48			$ 1.48
Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Cash	$ 5,000,000
Board Of Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Cash dividend per share				$ 0.0225	$ 0.0225
2021 And 2022 Equity Incentive Plan [Member] | Employees And Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of restricted stock granted			796,434
Rrestricted stock Award		$ 100,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation							$ 0	$ 0
Options exercised in period							0	0
Options expirations in period								2,913

SCHEDULE OF ASSET RETIREMENT OB

SCHEDULE OF ASSET RETIREMENT OBLIGATION (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]
Balance, beginning of year	$ 15,442	$ 1,461
Acquired or incurred	11	11,811
Cost and life revisions	(43)	1,825
Plugged	(52)	(407)
Sold		(189)
Accretion	536	941
Balance, end of period	$ 15,894	$ 15,442

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 27, 2022	May 03, 2022	Jan. 05, 2022	Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation	$ 15,894	$ 15,442	$ 1,700	$ 500	$ 9,600	$ 1,461

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	7%	45%
Discrete income tax benefit		$ 2.4

SCHEDULE OF BASIC AND DILUTED N

SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ (2,515)	$ (1,247)	$ 122	$ (3,384)	$ (3,762)	$ (3,262)
Basic weighted average common shares outstanding	25,187,000		24,924,000		25,183,000	24,324,000
Dilutive effect of potentially dilutive securities			341,000
Diluted weighted average common shares outstanding	25,186,797		25,265,180		25,182,704	24,323,859
Basic net income (loss) per share	$ (0.10)		$ 0		$ (0.15)	$ (0.13)
Diluted net income (loss) per share	$ (0.10)		$ 0		$ (0.15)	$ (0.13)

SCHEDULE OF ANTI-DILUTIVE WEIGH

SCHEDULE OF ANTI-DILUTIVE WEIGHTED AVERAGE SHARES (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,278	30	1,278	817
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	28	30	28	30
Unvested Shares of Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,250		1,250	787

SCHEDULE OF RECURRING MEASUREME

SCHEDULE OF RECURRING MEASUREMENTS OF FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current:
Commodity derivatives		$ 1,694
Total Fair Value [Member]
Current:
Commodity derivatives	129
Current:
Commodity derivatives	(121)
Net derivative instruments	8
Effect of Netting [Member]
Current:
Commodity derivatives	(121)
Current:
Commodity derivatives	121
Net derivative instruments
Net Fair Value Presented [Member]
Current:
Commodity derivatives	8
Current:
Commodity derivatives
Net derivative instruments	8
Fair Value, Inputs, Level 1 [Member]
Current:
Commodity derivatives
Current:
Commodity derivatives
Net derivative instruments
Fair Value, Inputs, Level 2 [Member]
Current:
Commodity derivatives	129
Current:
Commodity derivatives	(121)
Net derivative instruments	8
Fair Value, Inputs, Level 3 [Member]
Current:
Commodity derivatives
Current:
Commodity derivatives
Net derivative instruments

SCHEDULE OF INVESTMENT IN THE M

SCHEDULE OF INVESTMENT IN THE MARKETABLE EQUITY SECURITIES (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Fair value of marketable equity securities	$ 91	$ 107
Anfield Energy [Member]
Number of shares owned	2,421,180	2,421,180
Quoted market price	$ 0.03771	$ 0.04429
Fair value of marketable equity securities	$ 91,293	$ 107,234

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details Narrative) $ in Millions		1 Months Ended
	Jul. 26, 2022 USD ($) a	Jan. 31, 2022 USD ($)	Jun. 30, 2023 a
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of asset acquisitions percentage		10%
Fair value of asset acquisitions		$ 87.7
Fair value of asset acquisitions	$ 7.3
Area of land | a	13.84		4,500
Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk-free rate, maximum			7.30%
Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk-free rate, maximum			9.75%

SCHEDULE OF OTHER CURRENT ASSET

SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Prepaid expense	$ 550	$ 138
Joint interest billings receivable	352	332
Income tax receivable	33	50
Other	38	38
Total other current assets	$ 973	$ 558

SCHEDULE OF ACCOUNTS PAYABLE AN

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable	$ 2,538	$ 2,566
Operating expense and oil and gas property accruals	1,136	1,378
Revenue payables	3,983	3,503
Production taxes payable	370	319
Insurance premium financing	422	54
Other	15	12
Total accounts payable and accrued expenses	$ 8,464	$ 7,832

SCHEDULE OF SUPPLEMENTAL DISCLO

SCHEDULE OF SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ (558)	$ (86)
Change in capital expenditure accruals	50	453
Change in accrual for acquisition costs		(546)
Common stock issued for acquisition of properties		64,694
Assumption of commodity derivative liability in acquisition of properties		3,152
Assumption of debt in acquisition of properties		3,347
Assumption of suspense accounts in acquisition of properties		1,276
Addition of operating lease liability and right of use asset		953
Asset retirement obligations	(32)	10,302
Financing of insurance premiums with note payable	$ 654	$ 588

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Forecast [Member] $ in Millions	3 Months Ended
	Sep. 30, 2023 USD ($)
Minimum [Member]
Write down of oil and gas property	$ 3
Maximum [Member]
Write down of oil and gas property	$ 4