U.S. Energy (USEG) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 11, 2016
Document And Entity Information
Entity Registrant Name	US ENERGY CORP
Entity Central Index Key	101,594
Document Type	10-Q
Trading Symbol	USEG
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,769,571
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and equivalents	$ 1,360	$ 3,354
Marketable equity securities	1,178	251
Oil and gas sales receivable	834	1,143
Assets held for sale	653
Prepaid expenses and other	319	136
Oil price risk derivatives	174	1,634
Discontinued operations - assets of mining segment	135	318
Total current assets	4,653	6,836
Oil and gas properties under full cost method:
Unevaluated properties	4,665	5,664
Evaluated properties	89,402	97,912
Less accumulated depreciation, depletion and amortization	(81,774)	(80,144)
Net oil and gas properties	12,293	23,432
Other assets:
Property and equipment, net	1,934	2,658
Other assets	158	206
Total other assets	2,092	2,864
Total assets	19,038	33,132
Accounts payable and accrued liabilities:
Payable to major operator	3,302	4,159
Contingent ownership interests	3,593	3,108
Trade payables and accrued expenses	1,216	1,791
Accrued compensation and benefits	51	1,352
Current portion of long-term debt	6,000	6,000
Discontinued operations of mining properties		204
Total current liabilities	14,162	16,614
Noncurrent liabilities:
Asset retirement obligations	1,054	1,038
Other accrued liabilities	173	5
Total noncurrent liabilities	1,227	1,043
Commitments and contingencies (Note 9)
Shareholders' equity:
Preferred stock, par value $0.01 per share. Authorized 100,000 shares, issued and outstanding 50,000 shares of Series A Convertible Preferred Stock in 2016; liquidation preference of $2,034 as of June 30, 2016	1
Common stock, $0.01 par value; unlimited shares authorized; issued and outstanding 4,704,267 shares in 2016 and 4,699,956 shares in 2015	47	47
Additional paid-in capital	127,197	125,133
Accumulated deficit	(124,523)	(109,705)
Other comprehensive income	927
Total shareholders' equity	3,649	15,475
Total liabilities and shareholders' equity	$ 19,038	$ 33,132

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	100,000	100,000
Preferred stock, liquidation preference, value	$ 2,034
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, unlimited authorized	Unlimited	Unlimited
Common stock, issued	4,704,267	4,699,956
Common stock, outstanding	4,704,267	4,699,956
Series A Preferred Stock [Member]
Preferred stock, issued	50,000
Preferred stock, outstanding	50,000

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Oil	$ 1,677	$ 2,934	$ 2,541	$ 5,231
Natural gas and liquids	319	351	521	733
Total revenue	1,996	3,285	3,062	5,964
Oil and gas operations:
Production costs	1,434	2,021	2,464	3,873
Depreciation, depletion and amortization	864	2,055	1,646	4,929
Impairment of oil and gas properties	2,611	3,208	9,568	22,448
General and administrative:
Compensation and benefits, including directors	172	676	311	1,530
Stock-based compensation	34	109	68	224
Professional services	541	274	768	540
Insurance, rent and other	16	162	183	407
Total operating expenses	5,672	8,505	15,008	33,951
Operating loss	(3,676)	(5,220)	(11,946)	(27,987)
Other income (expense):
Realized gain (loss) on oil price risk derivatives	380	(25)	1,262	(139)
Change in unrealized gain (loss) on oil price risk derivatives	(887)	(272)	(1,460)	(335)
Gain on sale of assets	100		100	16
Rental and other income, net of expenses	(48)	10	(79)	50
Interest expense	(75)	(66)	(247)	(129)
Loss from continuing operations	(4,206)	(5,573)	(12,370)	(28,524)
Loss from discontinued operations	(10)	(707)	(2,448)	(1,459)
Net loss	(4,216)	(6,280)	(14,818)	(29,983)
Other comprehensive loss:
Unrealized gain in marketable equity securities	927	5	927	5
Comprehensive loss	(3,289)	(6,275)	(13,891)	(29,978)
Loss from continuing operations applicable to common shareholders:
Loss from continuing operations	(4,206)	(5,573)	(12,370)	(28,524)
Accrued dividends related to Series A Convertible Preferred Stock	(62)		(96)
Loss from continuing operations applicable to common shareholders	$ (4,268)	$ (5,573)	$ (12,466)	$ (28,524)
Earnings (loss) per share applicable to common shareholders (basic and diluted):
Continuing operations (in dollars per share)	$ (0.89)	$ (1.19)	$ (2.63)	$ (6.10)
Discontinued operations (in dollars per share)		(0.15)	(0.52)	(0.31)
Total (in dollars per share)	$ (0.90)	$ (1.34)	$ (3.15)	$ (6.41)
Weighted average shares outstanding- basic and diluted (in shares)	4,705,000	4,675,000	4,705,000	4,675,000

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balances at beginning at Dec. 31, 2015		$ 47	$ 125,133	$ (109,705)		$ 15,475
Balances at beginning (in shares) at Dec. 31, 2015		4,699,956
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon vesting of restricted common stock, net
Issuance of common stock upon vesting of restricted common stock, net (in shares)		5,556
Stock-based compensation			68			68
Issuance of Series A Convertible Preferred Stock in disposition of mining segment	$ 1		1,999			2,000
Issuance of Series A Convertible Preferred Stock in disposition of mining segment (in shares)	50,000
Cash payment for fractional shares in reverse stock split			(3)			(3)
Cash payment for fractional shares in reverse stock split (in shares)		(1,245)
Unrealized gain on marketable equity securities					927	927
Net loss				(14,818)		(14,818)
Balances at end at Jun. 30, 2016	$ 1	$ 47	$ 127,197	$ (124,523)	$ 927	$ 3,649
Balances at end (in shares) at Jun. 30, 2016	50,000	4,704,267

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (14,818)	$ (29,983)
Loss from discontinued operations	2,448	1,459
Loss from continuing operations	(12,370)	(28,524)
Adjustments to reconcile loss from continuing operations to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization	1,718	5,002
Impairment of oil and gas properties	9,568	22,448
Change in fair value of oil price risk derivative	1,460	335
Amortization of debt issuance costs	152	28
Stock-based compensation	68	224
Gain on sale of assets	(100)	(16)
Decrease (increase) in:
Oil and gas sales receivable	309	1,399
Other assets	(160)	50
Increase (decrease) in:
Accounts payable and other liabilities	(948)	2,580
Accrued compensation and benefits	(1,131)	(10)
Net cash provided by (used in) operating activities	(1,434)	3,516
Cash flows from investing activities:
Capital expenditures	(86)	(3,547)
Proceeds from settlement of lawsuit involving oil and gas properties		1,500
Proceeds from sale of property and equipment		16
Net change in restricted investments		(30)
Net cash used in investing activities:	(86)	(2,061)
Cash flows from financing activities:
Proceeds from issuance of preferred stock	1
Payments for debt issuance costs	(24)
Cash payment for fractional shares in reverse stock split	(3)
Net cash used in financing activities	(26)
Discontinued operations:
Net cash used in operating activities for discontinued operations	(448)	(1,398)
Net increase (decrease) in cash and equivalents	(1,994)	57
Cash and equivalents, beginning of period	3,354	4,010
Cash and equivalents, end of period	1,360	4,067
Supplemental disclosures of cash flow information:
Income tax paid
Interest paid	108	129
Non-cash investing and financing activities:
Issuance of preferred stock in disposition of mining segment	1,999
Elimination of asset retirement obligations in disposition of mining segment	204
Unrealized gain on marketable equity securities	927	5
Net additions to oil and gas properties through asset retirement obligations	1	61
Increase (decrease) in accrued capital expenditures		$ 1,325

ORGANIZATION, OPERATIONS AND SI

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
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 subsidiaries referred to as the “Company” or “U.S. Energy”) was incorporated in the State of Wyoming on January 26, 1966. The Company’s principal business activities are focused on the acquisition, exploration and development of oil and gas properties in the United States. 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 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, as amended, for the year ended December 31, 2015. The Company’s financial condition as of June 30, 2016, and operating results for the three and six months ended June 30, 2016 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, 2016. As discussed in Note 5, during the fourth quarter of 2015 the Company began accounting for its mining operations as a Discontinued Operation. Accordingly, certain reclassifications have been made to the prior period balances in order to conform to the current period presentation. These and other reclassifications had no impact on working capital, net loss, shareholders’ equity or cash flows as previously reported. Reverse Stock Split The Company held its annual meeting of shareholders on June 20, 2016. At the meeting, the Company’s shareholders approved Articles of Amendment to Restated Articles of Incorporation (the “Amendment”) to effect a six shares for one share reverse stock split of the Company’s $0.01 par value common stock (the “Reverse Stock Split”). The Amendment was filed with the Wyoming Secretary of State and was effective on June 20, 2016. As a result of the Reverse Stock Split, every six shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or the number of shares of common stock authorized. No fractional shares were issued as a result of the Reverse Stock Split. Fractional shares that would otherwise have resulted from the Reverse Stock Split were paid in a proportionate amount based on the average closing price of $2.23 for the five trading days immediately preceding the date of the Reverse Stock Split. The aggregate number of fractional shares canceled in the Reverse Stock Split was 1,245 shares, resulting in a total cash payment of $3. All references in the accompanying financial statements to the number of shares of common stock and per share amounts have been retroactively adjusted to give effect to the Reverse Stock Split. 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 oil and gas reserves that are used in the calculation of depreciation, depletion, amortization and impairment of the carrying value of evaluated oil and gas properties; production and commodity price estimates used to record accrued oil and gas sales receivable; valuation of commodity derivative instruments; and the cost 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 gas, these estimates could change in the near term and such changes could be material. Principles of Consolidation The accompanying financial statements include the accounts of the Company and its wholly owned subsidiaries Energy One, LLC (“Energy One”), Highlands Ranch LLC (“Highlands Ranch”) and Remington Village, LLC (“Remington Village”). All inter-company balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation of the accompanying financial statements. Comprehensive Income (Loss) Comprehensive income (loss) is used to refer to net income (loss) plus other comprehensive income (loss). Other comprehensive income (loss) is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of shareholders’ equity instead of net income (loss). Recent Accounting Pronouncements The following recently issued accounting standards are not yet effective; the Company is assessing the impact these standards will have on its consolidated financial statements, as well as the method of adoption and period in which adoption is expected to occur: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The following recently issued accounting standards were adopted effective January 1, 2016; the impact of adoption did not have a material impact on the Company’s consolidated financial statements: In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In January 2015, the FASB issued ASU 2015-01, “ Income Statement—Extraordinary and Unusual Items” In February 2015, the FASB issued ASU No. 2015-02, “Consolidation: Amendments to the Consolidation Analysis” During 2015, the FASB issued ASUs No. 2015-03 and No. 2015-15 titled “Interest-Imputation of Interest”,

LIQUIDITY

LIQUIDITY	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY	2. LIQUIDITY As of June 30, 2016, the Company has a working capital deficit of $9,509 and an accumulated deficit of $124,523. Additionally, the Company incurred a net loss of $14,818 for the six months ended June 30, 2016. During 2015 and 2016, compliance was not maintained with certain financial ratio covenants in the credit agreement with Wells Fargo as discussed in Note 7. In July 2015, Wells Fargo agreed to enter into a third amendment to the credit agreement and provided waivers for non-compliance with the financial ratio covenants for the fiscal quarters ended June 30, 2015 and September 30, 2015. Commencing in September 2015, the Company completed the following actions which are expected to improve the Company’s operating results in 2016 and enable the Company to survive the current oil and gas industry price environment: · During the third quarter of 2015, the Company began to implement restructuring actions to reduce corporate overhead through a reduction in the size of the Company’s workforce from 14 employees at the end of 2014 to one employee by January 2016. Additionally, in December 2015 the Company completed a move of its corporate headquarters to Denver, Colorado for better access to financial services and to improve access to oil and gas deal flow. Management expects its restructuring and other cost-cutting actions will result in an overhead reduction of approximately $4,000 on an annualized basis. During the six months ended June 30, 2016, the Company began to realize the benefits of these actions as aggregate general and administrative expenses were reduced by more than 50% as compared to the six months ended June 30, 2015. · As discussed in Note 5, in February 2016 the Company completed the disposition of its mining segment, including the Keystone Mine, a related water treatment plant and other related properties. A significant objective for completing the disposition was to improve future profitability through the elimination of the obligations to operate the water treatment plant and mine holding costs, which are expected to result in estimated annual cash savings of $3,000. During the six months ended June 30, 2016, the Company began to realize the benefits of this disposition as aggregate operating expenses associated with the mining segment were reduced from $1,459 for the six months ended June 30, 2015 to $373 for the six months ended June 30, 2016. Management believes the disposition of the Company’s mining segment is a major step in the transformation of U.S. Energy to solely focus on its existing oil and gas business. · In April 2016, Wells Fargo provided a waiver for non-compliance with the covenants in the credit agreement for the fiscal quarter ended December 31, 2015. As discussed in Note 7, in August 2016 Wells Fargo agreed to enter into a fourth amendment to the credit agreement that provides for, among other things, a limited waiver of the negative financial covenants as it relates to the fiscal quarters ended March 31, 2016 and June 30, 2016. Management believes that Wells Fargo will not demand repayment until an alternative lender can be obtained. However, no assurance can be provided and the entire principal balance of $6,000 is classified as a current liability as of June 30, 2016, due to management’s expectation that further non-compliance with the financial ratio covenants is likely for the third quarter of 2016. The ongoing availability of borrowings under this credit agreement through the maturity date of July 30, 2017, or the receipt of funding from alternative sources, is critical to the Company’s ability to survive until oil and gas prices recover. The Company expects that its share of the drilling and completion costs associated with proved undeveloped oil and gas properties that it will be required to fund is approximately $1,000 in 2017 and $3,800 in 2018. However, the specific timing and amount of these expenditures is controlled by the operators of the respective properties and can change based on a variety of economic and operating conditions. The Company’s ability to finance these planned capital expenditures is contingent upon its ability to repay $6,000 of outstanding borrowings under the Wells Fargo credit agreement and to obtain alternative sources of financing. In order to reduce the financing commitments, the Company intends to pursue sales of non-core assets to generate near-term liquidity. Alternatives that may be pursued include selling or joint venturing an interest in certain oil and gas properties, selling real estate assets in Wyoming, selling marketable equity securities, issuing shares of common stock for cash or as consideration for acquisitions, and other alternatives, as the Company determines how to best fund its capital programs and meet its financial obligations. As of June 30, 2016, the Company had cash and equivalents of $1,360. Management believes approximately $7,000 of annualized overhead and mining expense reductions have poised the Company to survive the current low commodity price environment. Management believes the Company’s new singular industry focus, combined with attractive producing properties and a low-cost overhead structure, makes the Company an attractive vehicle to partner with for potential investors and lenders during this industry downturn and low commodity price environment. However, there can be no assurance that the Company will be able to complete future financings, dispositions or acquisitions on acceptable terms or at all.

OIL PRICE RISK DERIVATIVES

OIL PRICE RISK DERIVATIVES	6 Months Ended
	Jun. 30, 2016
Price Risk Derivatives [Abstract]
OIL PRICE RISK DERIVATIVES	3. OIL PRICE RISK DERIVATIVES The Company’s wholly-owned subsidiary Energy One has entered into crude oil derivative contracts (“economic hedges”) with Wells Fargo, the Company’s lender as discussed further in Note 7. The derivative contracts are priced based on West Texas Intermediate (“WTI”) quoted prices for crude oil. The Company is a guarantor of Energy One’s obligations under the economic hedges. The objective of utilizing the economic hedges is to reduce the effect of price changes on a portion of the Company’s future oil production, achieve more predictable cash flows in an environment of volatile oil and gas prices and to manage the Company’s exposure to commodity price risk. The use of these derivative instruments limits the downside risk of adverse price movements. However, there is a risk that such use may limit the Company’s ability to benefit from favorable price movements. Energy One may, from time to time, add incremental derivatives to hedge additional production, restructure existing derivative contracts or enter into new transactions to modify the terms of current contracts in order to realize the current value of its existing positions. The Company does not engage in speculative derivative activities or derivative trading activities, nor does it use derivatives with leveraged features. Presented below is a summary of outstanding “costless collars” with Wells Fargo as of June 30, 2016 (which total an aggregate of 55,200 barrels of oil production during the last six months of 2016): Settlement Period Quantity Contract Price Begin End (bbls/ day) Put Call 7/1/16 12/31/16 300 $ 50.00 $ 65.25 As of June 30, 2016, the aggregate fair value of oil derivative put contracts was an asset of $189 and the aggregate fair value of oil derivative call contracts was a liability of $15. Since these contracts are with the same counterparty, the Company recognizes the net asset of $174 in the accompanying balance sheet as of June 30, 2016. Since all of the derivative contracts expire within six months of the balance sheet date, the entire amount is included in current assets. As of December 31, 2015, the aggregate fair value of oil derivative put contracts was an asset of $1,674 and the aggregate fair value of oil derivative call contracts was a liability of $40, resulting in a net asset of $1,634. Unrealized gains and losses resulting from derivatives are recorded at fair value in the consolidated balance sheet. Changes in fair value, as well as realized gains (losses) arising upon derivative contract settlements are included in the “change in unrealized gain (loss) on oil price risk derivatives” in the consolidated statements of operations.

CEILING TEST FOR OIL AND GAS PR

CEILING TEST FOR OIL AND GAS PROPERTIES	6 Months Ended
	Jun. 30, 2016
Oil and Gas Property [Abstract]
CEILING TEST FOR OIL AND GAS PROPERTIES	4. CEILING TEST FOR OIL AND GAS PROPERTIES The reserves used in the Company’s full cost 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, 2016, the Company used a price of $43.12 per barrel for oil and $2.24 per MMbtu for natural gas (as further adjusted for property specific gravity, quality, local markets and distance from markets) to compute the future cash flows of the Company’s producing properties. These prices compare to $50.28 per barrel for oil and $2.59 per MMbtu for natural gas used in the calculation of the ceiling test as of December 31, 2015. The discount factor used was 10%. For the three months ended June 30, 2016 and 2015, ceiling test impairment charges for the Company’s oil and gas properties amounted to $2,611 and $3,208, respectively. For the six months ended June 30, 2016 and 2015, ceiling test impairment charges for the Company’s oil and gas properties amounted to $9,568 and $22,448, respectively. These impairment charges were primarily related to (i) a decline in the price of oil, (ii) reductions in the estimated quantities that are economically recoverable in the current low oil price environment, and (iii) the transfer of approximately $1,000 of unevaluated properties during the first quarter of 2016 to the full cost pool due to impairment.

DISCONTINUED OPERATIONS AND PRE

DISCONTINUED OPERATIONS AND PREFERRED STOCK ISSUANCE	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS AND PREFERRED STOCK ISSUANCE	5. DISCONTINUED OPERATIONS AND PREFERRED STOCK ISSUANCE Disposition of Mining Segment In February 2006, the Company reacquired the Mt. Emmons molybdenum mining properties (the “Property”). From the time of the Company’s reacquisition of the Property until its transfer as described below, the Company did not conduct any extractive mining operations at the Property and was obligated under existing permits to operate a water treatment plant (“WTP”) and to incur holding costs associated with the retention of the mining properties, which resulted in aggregate annual expenses of approximately $3,000 during each of the three years in the period ended December 31, 2015. The market price for molybdenum oxide was approximately $11 per pound during 2013 and 2014 with a decrease to approximately $5 per pound by the fourth quarter of 2015. In light of the considerable ongoing costs related to the Property and the deteriorating market for molybdenum, during 2015 the Company began to explore the viability of alternative structures to the development of the Property that could result in a sharing or elimination of the ongoing costs and liabilities. In February 2016, the Company’s Board of Directors decided to dispose of the Property rather than continuing the Company’s long-term development strategy whereby the Company entered into the following agreements: A. An Acquisition Agreement (the “Acquisition Agreement”) was entered into with Mt. Emmons Mining Company, a subsidiary of Freeport-McMoRan Inc. (“MEM”), whereby MEM acquired the Property which consists of the Mt. Emmons mine site located in Gunnison County, Colorado, including the Keystone Mine, the WTP and other related properties. Under the Acquisition Agreement, MEM replaced the Company as the permittee and operator of the WTP and will discharge the obligation of the Company to operate the WTP from and after the closing in accordance with the applicable permits issued by the Colorado Department of Public Health and Environment. The Company did not receive any cash consideration for the disposition; the sole consideration for the transfer was that MEM assumed the Company’s obligations to operate the WTP and to pay the future mine holding costs for portions of the Property that it desires to retain. As a result of the February 2016 disposition of the Property, the Company determined that an impairment charge of $22,620 was required to be recorded in the fourth quarter of 2015 and the disposal of the Company’s mining segment was reported as discontinued operations in the Company’s financial statements. Presented below are the assets and liabilities associated with the Company’s mining segment as of June 30, 2016 and December 31, 2015: 2016 2015 Assets retained by the Company: Performance bonds and refundable deposits $ 135 $ 114 Net assets conveyed to Purchaser: Undeveloped mining claims - 21,942 Mining equipment - 1,774 Less accumulated depreciation of mining equipment - (892 ) Less write-down due to impairment - (22,620 ) Net book value of assets conveyed - 204 Total assets of discontinued operations $ 135 $ 318 Asset retirement obligations assumed by Purchaser $ - $ 204 B. Concurrent with entry into the Acquisition Agreement and as additional consideration for MEM to accept transfer of the Property, the Company entered into a Series A Convertible Preferred Stock Purchase Agreement (the “Series A Purchase Agreement”) with MEM, whereby the Company issued 50,000 shares of newly designated Series A Convertible Preferred Stock (the “Preferred Stock”) in exchange for (i) MEM accepting the transfer of the Property and replacing the Company as the permittee and operator of the WTP, and (ii) the payment of approximately $1 to the Company. The Series A Purchase Agreement contains customary representations and warranties on the part of the Company. As contemplated by the Acquisition Agreement and the Series A Purchase Agreement and as approved by the Company’s Board of Directors, the Company filed with the Secretary of State of the State of Wyoming Articles of Amendment containing a Certificate of Designations with respect to the Preferred Stock (the “Certificate of Designations”). Pursuant to the Certificate of Designations, the Company designated 50,000 shares of its authorized preferred stock as Series A Convertible Preferred Stock. The Preferred Stock accrues dividends at a rate of 12.25% per annum of the Adjusted Liquidation Preference (as defined); such dividends are not payable in cash but are accrued and compounded quarterly in arrears on the first business day of the succeeding calendar quarter. At issuance, the aggregate fair value of the Preferred Stock was $2,000 based on the initial liquidation preference of $40 per share. The “Adjusted Liquidation Preference” is initially $40 per share of Preferred Stock, with increases each quarter by the accrued quarterly dividend. The Preferred Stock is senior to other classes or series of shares of the Company with respect to dividend rights and rights upon liquidation. No dividend or distribution will be declared or paid on junior stock, including the Company’s common stock, (1) unless approved by the holders of Preferred Stock and (2) unless and until a like dividend has been declared and paid on the Preferred Stock on an as-converted basis. At the option of the holder, each share of Preferred Stock was initially convertible into approximately 13.33 shares of the Company’s $0.01 par value common stock (the “Conversion Rate”) for an aggregate of 666,667 shares of common stock. The Conversion Rate is subject to anti-dilution adjustments for stock splits, stock dividends, certain reorganization events, and to price-based anti-dilution protections if the Company subsequently issues shares for less than 90% of fair value on the date of issuance. Each share of Preferred Stock will be convertible into a number of shares of common stock equal to the ratio of the initial conversion value to the conversion value as adjusted for accumulated dividends multiplied by the Conversion Rate. In no event will the aggregate number of shares of common stock issued upon conversion be greater than approximately 793,000 shares. The Preferred Stock will generally not vote with the Company’s common stock on an as-converted basis on matters put before the Company’s shareholders. The holders of the Preferred Stock have the right to approve specified matters as set forth in the Certificate of Designations and have the right to require the Company to repurchase the Preferred Stock in connection with a change of control. However, the Company’s Board of Directors has the ability to prevent any change of control that could trigger a redemption obligation related to the Preferred Stock. During the first quarter of 2016, the Company recorded the fair value of the Preferred Stock based on the initial liquidation preference of $2,000. Since the cash consideration paid by MEM for the Preferred Stock was $1, the Company recorded a charge to discontinued operations of approximately $1,999 associated with the issuance. This charge represents additional consideration to induce MEM to assume the Company’s previous obligations to operate the WTP. As of June 30, 2016, the aggregate Adjusted Liquidation Preference was $2,034 which was convertible into 678,009 shares of common stock, and accrued dividends not yet included in the Adjusted Liquidation Preference amounted to $62. C. Concurrent with entry into the Acquisition Agreement and the Series A Purchase Agreement, the Company and MEM entered into an Investor Rights Agreement, which provides MEM with the rights to certain information and Board observer rights. MEM has agreed that it, along with its affiliates, will not acquire more than 16.86% of the Company’s issued and outstanding shares of common stock. In addition, MEM has the right to request registration of the shares of common stock issuable upon conversion of the Preferred Stock under the Securities Act of 1933, as amended. Results of Operations for Discontinued Operations The results of operations of the discontinued mining operations are presented separately in the accompanying financial statements. Presented below are the components for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30: June 30: 2016 2015 2016 2015 Issuance of preferred stock to induce dispostion $ - $ - $ (1,999 ) $ - Operating expenses of mining segment: Water treatment plant - (424 ) (256 ) (852 ) Mine property holding costs - (252 ) (117 ) (545 ) Depreciation of mine equipment - (31 ) - (62 ) Professional fees related to disposition (10 ) - (76 ) - Total results for discontinued operations $ (10 ) $ (707 ) $ (2,448 ) $ (1,459 )

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	6 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
ASSETS HELD FOR SALE	6. ASSETS HELD FOR SALE As of June 30, 2016, the Company owns three parcels of land in Wyoming for an aggregate of approximately 13 acres of land with a carrying value of $653. This land is currently listed for sale and management expects to sell the land within the following year at prices in excess of the carrying value.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
DEBT	7. DEBT Energy One, a wholly-owned subsidiary the Company, has a credit facility with Wells Fargo Bank, National Association (“Wells Fargo”). As of June 30, 2016 and December 31, 2015, outstanding borrowings under the credit agreement amounted to $6,000, which is also the maximum amount of the borrowing base. Borrowings under the credit agreement are collateralized by Energy One’s oil and gas producing properties and substantially all of the Company’s cash and equivalents. Each borrowing under the agreement has a term of six months, but can be continued at the Company’s election through July 2017 if the Company is in compliance with the covenants under the credit agreement. The weighted average interest rate on this debt is 3.19% as of June 30, 2016. Energy One is required to comply with customary affirmative covenants and with certain negative covenants. The principal negative financial covenants do not permit (i) the interest coverage ratio (EBITDAX to interest expense) to be less than 3.0 to 1; (ii) total debt to EBITDAX to be greater than 3.5 to 1; and (iii) the current ratio to be less than 1.0 to 1.0. EBITDAX is defined in the Credit Agreement as consolidated net income, plus non-cash charges. Additionally, the credit agreement prohibits or limits Energy One’s ability to incur additional debt, pay cash dividends and other restricted payments, sell assets, enter into transactions with affiliates, and to merge or consolidate with another company. The Company is a guarantor of Energy One’s obligations under the credit agreement. On August 11, 2016, the Company and Wells Fargo entered into a fourth amendment (the "Fourth Amendment") to the credit agreement. The Fourth Amendment provides for, among other things: (i) a limited waiver of the negative financial covenants as it relates to the fiscal quarters ended March 31, 2016 and June 30, 2016, (ii) implementation of a new negative covenant that prohibits the Company’s consolidated general and administrative expenses (as defined) from exceeding $3,000 for each of the years ending December 31, 2016 and 2017, (iii) deferral of the next borrowing base redetermination until December 1, 2016, and (iv) the pledge of additional collateral by U.S. Energy consisting of certain real estate assets with a net carrying value of $1,860, and its shares of Anfield Resources, Inc., which had a fair value of $1,147 as of June 30, 2016. Because the Company projects that it is unlikely that Energy One will regain compliance with the negative financial covenants for the entirety of the next 12 months, outstanding borrowings of $6,000 are presented as a current liability in the accompanying consolidated balance sheets as of June 30, 2016 and December 31, 2015. In the event that Energy One is unable to obtain further waivers under the credit agreement to address the anticipated future breaches of the negative financial covenants, and other actual or potential future breaches that may occur, Wells Fargo could elect to declare some or all of the Company’s debt to be immediately due and payable and could elect to terminate its commitment and cease making further loans.

EXECUTIVE RETIREMENT PLAN

EXECUTIVE RETIREMENT PLAN	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
EXECUTIVE RETIREMENT PLAN	8. EXECUTIVE RETIREMENT PLAN In October 2005, the Board of Directors adopted an Executive Retirement Policy (the “Retirement Plan”) for the benefit of certain executive officers of the Company. To be eligible to participate in the Retirement Plan, the executive officer was required to serve as one of the designated executive officers for at least 15 years, reached the age of 60, and been an employee of the Company on December 31, 2010. Upon retirement, the executive was entitled to cash payments equaling 50% of the greater of (i) the amount of compensation earned as base cash pay on the final regular pay check or (ii) the average annual pay, less all bonuses, received over the last five years of employment with the Company. The Company periodically engaged the services of a third party actuary to determine the estimated liability under the Retirement Plan. In December 2015, the Company and the Retirement Plan participants mutually agreed to terminate the Retirement Plan. As of December 31, 2015, the liability for retirement plan benefits was $583 and this entire balance was paid to participants during the first quarter of 2016.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES From time to time, the Company is party to certain legal actions and claims arising in the ordinary course of business. While the outcome of these events cannot be predicted with certainty, management does not expect these matters to have a materially adverse effect on the Company’s financial position or results of operations. Following is updated information related to currently pending legal matters: Arbitration of Employment Claim. Management does not believe there is any merit to the claim of termination without cause or that a change of control occurred. The ultimate outcome of this matter cannot presently be determined. Accordingly, adjustments, if any, that may result from the resolution of this matter have not been reflected in the accompanying consolidated financial statements. Contingent Ownership Interests.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	10. SHAREHOLDERS’ EQUITY Stock Options For the three months ended June 30, 2016 and 2015, total stock-based compensation expense related to stock options was $22 and $65, respectively. For the six months ended June 30, 2016 and 2015, total stock-based compensation expense related to stock options was $43 and $140, respectively. As of June 30, 2016, there was $99 of unrecognized expense related to unvested stock options, which will be recognized as stock-based compensation expense through January 2018. For the three months ended June 30, 2016, no stock options were granted, exercised, forfeited or expired. Presented below is information about stock options outstanding and exercisable as of June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Shares Price (1) Shares Price (1) Stock options outstanding 390,525 $ 20.64 390,525 $ 20.64 Stock options exercisable 371,248 $ 20.99 365,693 $ 21.17 (1) Represents the weighted average price. The following table summarizes information for stock options outstanding and for stock options exercisable at June 30, 2016: Options Outstanding Options Exercisable Number Exercise Price Remaining Number Weighted of Range Weighted Contractual of Average Shares Low High Average Term (years) Shares Exercise Price 56,786 $ 9.00 $ 9.00 $ 9.00 8.5 45,675 $ 9.00 49,504 12.48 12.48 12.48 7.0 48,004 12.48 98,396 13.92 17.10 15.01 3.3 98,396 15.01 185,839 22.62 30.24 29.35 1.6 179,174 29.60 390,525 $ 9.00 $ 30.24 $ 20.64 3.7 371,249 $ 20.99 As of June 30, 2016, an aggregate of approximately 351,000 shares are available for future grants under the Company’s stock option plans. Based upon the closing price for the Company’s common stock of $1.70 per share on June 30, 2016, there was no intrinsic value related to stock options outstanding as of June 30, 2016. Restricted Stock Grants In January 2015, the Board of Directors granted 56,786 shares of restricted stock under the 2012 Equity Plan to four officers of the Company. These shares originally vested annually over a period of three years. However, during 2015 vesting was accelerated for three of the four officers in connection with severance agreements for an aggregate of 40,119 shares. The remaining 16,667 shares vested for 5,556 shares in January 2016 and the remaining 11,111 shares will vest for 5,556 shares in January 2017 and 5,555 shares in January 2018. The fair market value of the 56,786 shares on the date of grant was approximately $511. For the three months ended June 30, 2016 and 2015, total stock-based compensation expense related to restricted stock grants was $13 and $42, respectively. For the six months ended June 30, 2016 and 2015, total stock-based compensation expense related to restricted stock grants was $25 and $84, respectively. As of June 30, 2016, there was $75 of unrecognized expense related to unvested restricted stock grants, which will be recognized as stock-based compensation expense through January 2018. Employee Stock Ownership Plan The Board of Directors of the Company adopted the U.S. Energy Corp. 1989 Employee Stock Ownership Plan ("ESOP") in 1989, for the benefit of all the Company’s employees. Employees become eligible to participate in the ESOP after one year of service which must consist of at least 1,000 hours worked. Employees become 20% vested after three years of service and increase their vesting by 20% each year thereafter until such time as they are fully vested after seven years of service. An employee’s total compensation paid, which is subject to federal income tax (up to an annual limit of $265 for the year ended December 31, 2015) is the basis for computing how much of the total annual funding is contributed into each employee’s personal account. An employee’s compensation divided by the total eligible compensation paid to all plan participants is the percentage that each participant receives on an annual basis. All shares of the Company’s common stock contributed to the ESOP have been allocated to specific employees and are vested. Total shares held by the ESOP at June 30, 2016 and December 31, 2015 were 340,726 and 789,110, respectively. For the three months ended June 30, 2015, total stock-based compensation expense related to the ESOP was $23. No expense related to the ESOP has been recorded for the three months ended June 30, 2016 since the Company’s Board of Directors has not determined if a discretionary contribution will be made for 2016. For the year ended December 31, 2015, the Company’s Board of Directors approved a mandatory contribution of $170 which is either payable in cash or may be settled through the issuance of common stock at the election of the Company. On July 7, 2016, the Board of Directors elected to issue 65,748 shares of the Company’s common stock with a fair value of $2.58 per share to settle this obligation. Accordingly, this liability is included in other long-term liabilities in the accompanying balance sheet as of June 30, 2016.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	11. INCOME TAXES For Federal income tax purposes, as of December 31, 2015 the Company had net operating loss and percentage depletion carryovers of approximately $57,000 and $7,000, respectively. The net operating loss carryovers may be carried back two years and forward twenty years from the year the net operating loss was generated. The net operating losses may be used to offset future taxable income and expire in varying amounts through 2035. In addition, the Company has alternative minimum tax credit carry-forwards of approximately $700 which are available to offset future federal income taxes over an indefinite period. The Company has established a valuation allowance for all deferred tax assets including the net operating loss and alternative minimum tax credit carryforwards discussed above since the “more likely than not” realization criterion was not met as of June 30, 2016 and 2015. Accordingly, the Company did not recognize an income tax benefit for the three and six months ended June 30, 2016 and 2015. The Company recognizes, measures, and discloses uncertain tax positions whereby tax positions must meet a “more-likely-than-not” threshold to be recognized. As of June 30, 2016, gross unrecognized tax benefits are immaterial and there was no change in such benefits during the three and six months ended June 30, 2016. The Company does not expect a significant increase or decrease to the uncertain tax positions within the next twelve months.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	12. EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed based on the weighted average number of common shares outstanding. For the three and six months ended June 30, 2016 and 2015, common stock equivalents excluded from the calculation of weighted average shares because they were antidilutive are as follows: Three Months Ended Six Months Ended June 30: June 30: 2016 2015 2016 2015 Stock options 390,525 436,132 (1) 390,525 436,132 (1) Unvested shares of restricted common stock 11,111 56,785 (1) 11,141 (1) 56,785 (1) Series A convertible preferred stock 678,009 (1) - 522,155 (1) - Total 1,079,645 492,917 923,821 492,917 (1) Includes weighted average number of shares for options issued during the period and shares of restricted stock that vested during the period.

SIGNIFICANT CONCENTRATIONS

SIGNIFICANT CONCENTRATIONS	6 Months Ended
	Jun. 30, 2016
Risks and Uncertainties [Abstract]
SIGNIFICANT CONCENTRATIONS	13. SIGNIFICANT CONCENTRATIONS The Company has exposure to credit risk in the event of nonpayment by the joint interest operators of the Company’s oil and gas properties. Approximately 27% of the Company’s proved developed oil and gas reserve quantities are associated with wells that are operated by a single operator (the “Major Operator”). As of June 30, 2016 and December 31, 2015, the Company had a liability to the Major Operator of $3,302 and $4,159, respectively, for accrued operating expenses and overpayments of net revenues when the Major Operator failed to recognize that the Company’s ownership interest reverted after payout, which was achieved for certain wells during 2014 and 2015. Beginning in the second quarter of 2015, the Major Operator began withholding the Company’s net revenues from all wells that it operates for the Company and management expects the Major Operator will continue to withhold the Company’s net revenues until this liability is paid in full. Based on the oil and gas prices and costs used to calculate in the Company’s estimated reserves as of June 30, 2016, this liability is not expected to be fully settled. However, under higher pricing scenarios the Company expects the liability will be repaid from future production. Accordingly, the aggregate balances are presented as current liabilities in the accompanying consolidated balance sheets.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	14. FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1 - Quoted prices for identical assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 2 - Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data. Level 2 also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or 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; also includes observable inputs for nonbinding single dealer quotes not corroborated by observable market data. The Company has processes and controls in place to attempt to ensure that fair value is reasonably estimated. 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: Oil Price Risk Derivative Valuation Methodologies The Company determines its estimate of the fair value of derivative instruments using a market approach based on several factors, including quoted market prices in active markets, quotes from third parties, the credit rating of the counterparty and the Company’s own credit rating. In consideration of counterparty credit risk, the Company assessed the likelihood that the counterparty to the derivative would default by failing to make any contractually required payments. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. At June 30, 2016 and December 31, 2015, derivative instruments utilized by the Company consisted of crude oil costless collars. The crude oil derivative markets are highly active. Although the Company’s derivative instruments are valued using indices, the instruments themselves are traded with third-party counterparties and are not openly traded on an exchange. As such, the Company has classified these instruments as Level 2. Marketable Equity Securities Valuation Methodologies The fair value of available for sale securities is based on quoted market prices obtained from independent pricing services. In consideration of the increase in the trading volumes for the Company’s investments in marketable equity securities, the Company determined that they should be classified in Level 1 as of June 30, 2016. Executive Retirement Liability Valuation Methodologies The executive retirement program is a standalone liability for which there is no available market price, principal market, or market participants. The Company records the estimated fair value of the long-term liability for estimated future payments under the executive retirement program based on the discounted value of estimated future payments associated with each individual in the program. The inputs available for this estimate are unobservable and are therefore classified as Level 3 inputs. Other Financial Instruments The carrying amount of cash and equivalents, oil and gas sales receivable, other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of those instruments. The recorded amounts for borrowings under the credit agreement discussed in Note 7 approximates the fair market value due to the variable nature of the interest rates, and the fact that market interest rates have remained substantially the same since the latest amendment to the credit agreement. Recurring measurements of the fair value of assets and liabilities as of June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Marketable equity securities: Sutter Gold Mining Company $ 31 $ - $ - $ 31 $ - $ 13 $ - $ 13 Anfield Resources, Inc. (1) 1,147 - - 1,147 - - 238 238 Crude oil price risk derivatives - 174 - 174 - 1,634 - 1,634 Total $ 1,178 $ 174 $ - $ 1,352 $ - $ 1,647 $ 238 $ 1,885 Executive retirement liability $ - $ - $ - $ - $ - $ - $ 584 $ 584 (1) For the period from September 1, 2015 when the Company acquired its investment in Anfield Resources, Inc. (“Anfield”) through March 31, 2016, average daily trading volume was approximately 10,000 shares and management concluded that the quoted marked price was not an accurate indicator of fair value. Accordingly, alternative methods were used to determine fair value upon receipt of the shares in September 2015, which required classification under Level 3 of the fair value hierarchy. During the second quarter of 2016, average daily trading volume increased to more than 240,000 shares and management now classifies its investment in Anfield under Level 1 of the fair value hierarchy. As a result of the reclassification of Anfield to Level 1, the Company recognized an unrealized gain of $909 during the three and six months ended June 30, 2016.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	15. SUBSEQUENT EVENTS As discussed in Note 10, on July 7, 2016, the Board of Directors elected to issue 65,748 shares of the Company’s common stock with a fair value of $2.49 per share to settle the liability to fund the ESOP contribution for 2015. As discussed in Note 7, on August 11, 2016, the Company entered into an amendment to the credit agreement with Wells Fargo which, among other things, provided limited waivers for financial ratio covenant noncompliance for the fiscal quarters ended March 31, 2016 and June 30, 2016. In July 2016, the Company entered into a non-binding letter of intent with IronHorse Resources LLC (“IronHorse”) pursuant to which the Company may obtain the right to acquire a 40% interest in a farmout agreement to participate in developing three core areas in the Wattenberg Field in Weld County, Colorado. The development program is slated to begin in the fourth quarter of 2016 with drilling to continue until the middle of 2017. If the participation agreement is entered into, the Company's commitment for drilling and completing the wells is expected to cost approximately $9,600. A director of the Company is one of the owners of IronHorse.

ORGANIZATION, OPERATIONS AND 22

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	Organization and Operations U.S. Energy Corp. (collectively with its subsidiaries referred to as the “Company” or “U.S. Energy”) was incorporated in the State of Wyoming on January 26, 1966. The Company’s principal business activities are focused on the acquisition, exploration and development of oil and gas properties in the United States.
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 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, as amended, for the year ended December 31, 2015. The Company’s financial condition as of June 30, 2016, and operating results for the three and six months ended June 30, 2016 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, 2016. As discussed in Note 5, during the fourth quarter of 2015 the Company began accounting for its mining operations as a Discontinued Operation. Accordingly, certain reclassifications have been made to the prior period balances in order to conform to the current period presentation. These and other reclassifications had no impact on working capital, net loss, shareholders’ equity or cash flows as previously reported.
Reverse Stock Split	Reverse Stock Split The Company held its annual meeting of shareholders on June 20, 2016. At the meeting, the Company’s shareholders approved Articles of Amendment to Restated Articles of Incorporation (the “Amendment”) to effect a six shares for one share reverse stock split of the Company’s $0.01 par value common stock (the “Reverse Stock Split”). The Amendment was filed with the Wyoming Secretary of State and was effective on June 20, 2016. As a result of the Reverse Stock Split, every six shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or the number of shares of common stock authorized. No fractional shares were issued as a result of the Reverse Stock Split. Fractional shares that would otherwise have resulted from the Reverse Stock Split were paid in a proportionate amount based on the average closing price of $2.23 for the five trading days immediately preceding the date of the Reverse Stock Split. The aggregate number of fractional shares canceled in the Reverse Stock Split was 1,245 shares, resulting in a total cash payment of $3. All references in the accompanying financial statements to the number of shares of common stock and per share amounts have been retroactively adjusted to give effect to the Reverse Stock Split.
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 oil and gas reserves that are used in the calculation of depreciation, depletion, amortization and impairment of the carrying value of evaluated oil and gas properties; production and commodity price estimates used to record accrued oil and gas sales receivable; valuation of commodity derivative instruments; and the cost 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 gas, these estimates could change in the near term and such changes could be material.
Principles of Consolidation	Principles of Consolidation The accompanying financial statements include the accounts of the Company and its wholly owned subsidiaries Energy One, LLC (“Energy One”), Highlands Ranch LLC (“Highlands Ranch”) and Remington Village, LLC (“Remington Village”). All inter-company balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation of the accompanying financial statements.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) is used to refer to net income (loss) plus other comprehensive income (loss). Other comprehensive income (loss) is comprised of revenues, expenses, gains, and losses that under GAAP are reported as separate components of shareholders’ equity instead of net income (loss).
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following recently issued accounting standards are not yet effective; the Company is assessing the impact these standards will have on its consolidated financial statements, as well as the method of adoption and period in which adoption is expected to occur: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The following recently issued accounting standards were adopted effective January 1, 2016; the impact of adoption did not have a material impact on the Company’s consolidated financial statements: In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging: Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity In January 2015, the FASB issued ASU 2015-01, “ Income Statement—Extraordinary and Unusual Items” In February 2015, the FASB issued ASU No. 2015-02, “Consolidation: Amendments to the Consolidation Analysis” During 2015, the FASB issued ASUs No. 2015-03 and No. 2015-15 titled “Interest-Imputation of Interest”,

OIL PRICE RISK DERIVATIVES (Tab

OIL PRICE RISK DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2016
Price Risk Derivatives [Abstract]
Schedule of outstanding "costless collars"	Presented below is a summary of outstanding “costless collars” with Wells Fargo as of June 30, 2016 (which total an aggregate of 55,200 barrels of oil production during the last six months of 2016): Settlement Period Quantity Contract Price Begin End (bbls/ day) Put Call 7/1/16 12/31/16 300 $ 50.00 $ 65.25

DISCONTINUED OPERATIONS AND P24

DISCONTINUED OPERATIONS AND PREFERRED STOCK ISSUANCE (Tables)	6 Months Ended
	Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]
Schedule of assets and liabilities associated with the mining segment	Presented below are the assets and liabilities associated with the Company’s mining segment as of June 30, 2016 and December 31, 2015: 2016 2015 Assets retained by the Company: Performance bonds and refundable deposits $ 135 $ 114 Net assets conveyed to Purchaser: Undeveloped mining claims - 21,942 Mining equipment - 1,774 Less accumulated depreciation of mining equipment - (892 ) Less write-down due to impairment - (22,620 ) Net book value of assets conveyed - 204 Total assets of discontinued operations $ 135 $ 318 Asset retirement obligations assumed by Purchaser $ - $ 204
Schedule of components of discontinued operations	The results of operations of the discontinued mining operations are presented separately in the accompanying financial statements. Presented below are the components for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30: June 30: 2016 2015 2016 2015 Issuance of preferred stock to induce dispostion $ - $ - $ (1,999 ) $ - Operating expenses of mining segment: Water treatment plant - (424 ) (256 ) (852 ) Mine property holding costs - (252 ) (117 ) (545 ) Depreciation of mine equipment - (31 ) - (62 ) Professional fees related to disposition (10 ) - (76 ) - Total results for discontinued operations $ (10 ) $ (707 ) $ (2,448 ) $ (1,459 )

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Schedule of stock options	Presented below is information about stock options outstanding and exercisable as of June 30, 2016 and December 31, 2015: June 30, 2016 December 31, 2015 Shares Price (1) Shares Price (1) Stock options outstanding 390,525 $ 20.64 390,525 $ 20.64 Stock options exercisable 371,248 $ 20.99 365,693 $ 21.17 (1) Represents the weighted average price.
Schedule of stock options outstanding and for stock options exercisable	The following table summarizes information for stock options outstanding and for stock options exercisable at June 30, 2016: Options Outstanding Options Exercisable Number Exercise Price Remaining Number Weighted of Range Weighted Contractual of Average Shares Low High Average Term (years) Shares Exercise Price 56,786 $ 9.00 $ 9.00 $ 9.00 8.5 45,675 $ 9.00 49,504 12.48 12.48 12.48 7.0 48,004 12.48 98,396 13.92 17.10 15.01 3.3 98,396 15.01 185,839 22.62 30.24 29.35 1.6 179,174 29.60 390,525 $ 9.00 $ 30.24 $ 20.64 3.7 371,249 $ 20.99

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of antidilutive shares excluded from weighted average calculation	Basic earnings (loss) per share is computed based on the weighted average number of common shares outstanding. For the three and six months ended June 30, 2016 and 2015, common stock equivalents excluded from the calculation of weighted average shares because they were antidilutive are as follows: Three Months Ended Six Months Ended June 30: June 30: 2016 2015 2016 2015 Stock options 390,525 436,132 (1) 390,525 436,132 (1) Unvested shares of restricted common stock 11,111 56,785 (1) 11,141 (1) 56,785 (1) Series A convertible preferred stock 678,009 (1) - 522,155 (1) - Total 1,079,645 492,917 923,821 492,917 (1) Includes weighted average number of shares for options issued during the period and shares of restricted stock that vested during the period.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of recurring measurements of the fair value of assets and liabilities	Recurring measurements of the fair value of assets and liabilities as of June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Marketable equity securities: Sutter Gold Mining Company $ 31 $ - $ - $ 31 $ - $ 13 $ - $ 13 Anfield Resources, Inc. (1) 1,147 - - 1,147 - - 238 238 Crude oil price risk derivatives - 174 - 174 - 1,634 - 1,634 Total $ 1,178 $ 174 $ - $ 1,352 $ - $ 1,647 $ 238 $ 1,885 Executive retirement liability $ - $ - $ - $ - $ - $ - $ 584 $ 584 (1) For the period from September 1, 2015 when the Company acquired its investment in Anfield Resources, Inc. (“Anfield”) through March 31, 2016, average daily trading volume was approximately 10,000 shares and management concluded that the quoted marked price was not an accurate indicator of fair value. Accordingly, alternative methods were used to determine fair value upon receipt of the shares in September 2015, which required classification under Level 3 of the fair value hierarchy. During the second quarter of 2016, average daily trading volume increased to more than 240,000 shares and management now classifies its investment in Anfield under Level 1 of the fair value hierarchy. As a result of the reclassification of Anfield to Level 1, the Company recognized an unrealized gain of $909 during the three and six months ended June 30, 2016.

ORGANIZATION, OPERATIONS AND 28

ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	Jun. 20, 2016USD ($)shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of reverse stock split	six shares for one share reverse stock split of the Company's $0.01 par value common stock (the "Reverse Stock Split"). The Amendment was filed with the Wyoming Secretary of State and was effective on June 20, 2016. As a result of the Reverse Stock Split, every six shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or the number of shares of common stock authorized.
Number of shares cancelled in reverse stock split | shares	1,245
Value of shares cancelled | $	$ 3

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 29, 2016USD ($)	Jan. 31, 2016Number	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2015USD ($)
Working capital					$ 9,509
Accumulated deficit			$ (124,523)		(124,523)				$ (109,705)
Net loss			(4,216)	$ (6,280)	(14,818)	$ (29,983)
Current portion of long-term debt			$ 6,000		6,000				$ 6,000
Amount of reduction in overhead					$ 4,000
Percentage of production barrel oil			50.00%		50.00%
Reduction in mining expense					$ 373	$ 1,459
Cash and equivalents			$ 1,360		1,360
Mining expense					7,000
Subsequent Event [Member]
Funds requirement for proved undeveloped oil and gas properties							$ 3,800	$ 1,000
Credit Agreement [Member] | Wells Fargo Bank, National Association [Member]
Current portion of long-term debt			$ 6,000		$ 6,000
Maturity date					Jul. 30, 2017
Minimum [Member]
Number of employees | Number		1
Maximum [Member]
Number of employees | Number		14
Series A Convertible Preferred Stock [Member]
Amount of reduction in overhead	$ 3,000

OIL PRICE RISK DERIVATIVES (Det

OIL PRICE RISK DERIVATIVES (Details) - From 07/01/2016 To 12/31/2016 [Member]	Jun. 30, 2016$ / Unitbbl
Put Contract [Member]
Quantity | bbl	300
Contract Price | $ / Unit	50
Call Contract [Member]
Quantity | bbl	300
Contract Price | $ / Unit	65.25

OIL PRICE RISK DERIVATIVES (D31

OIL PRICE RISK DERIVATIVES (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Boe	Dec. 31, 2015USD ($)
Call Contract [Member]
Derivative contracts	$ 15	$ 40
Put Contract [Member]
Derivative contracts	$ 189	1,674
Wells Fargo [Member]
Production of barrels of oil | Boe	55,200
Price risk derivative	$ 174	$ 1,634

CEILING TEST FOR OIL AND GAS 32

CEILING TEST FOR OIL AND GAS PROPERTIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Discount rate				10.00%
Impairment of the oil and gas properties	$ 2,611		$ 3,208	$ 9,568	$ 22,448
Unproved properties costs		$ 1,000
Oil (bbls) [Member]
Reserves				43.12 per barrel		50.28 per barrel
Natural Gas (mcfe) [Member]
Reserves				2.24 per MMbtu		2.59 per MMbtu

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Assets retained by the Company:
Performance bonds and refundable deposits	$ 135	$ 114
Net assets conveyed to Purchaser:
Undeveloped mining claims		21,942
Mining equipment		1,774
Less accumulated depreciation of mining equipment		(892)
Less write-down due to impairment		(22,620)
Net book value of assets conveyed		204
Total assets of discontinued operations	135	318
Asset retirement obligations assumed by Purchaser		$ 204

DISCONTINUED OPERATIONS (Deta34

DISCONTINUED OPERATIONS (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]
Issuance of preferred stock to induce dispostion			$ 2,000
Operating expenses of mining segment:
Water treatment plant		(424)	(256)	(852)
Mine property holding costs		(252)	(117)	(545)
Depreciation of mine equipment		(31)		(62)
Professional fees related to disposition	(10)		(76)
Total results for discontinued operations	$ (10)	$ (707)	$ (2,448)	$ (1,459)

DISCONTINUED OPERATIONS (Deta35

DISCONTINUED OPERATIONS (Details Narrative) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 29, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2015£ / shares	Dec. 31, 2014£ / shares	Dec. 31, 2013£ / shares
Aggregate annual expenses				$ 4,000
Market price (in pounds per share) | $ / shares				$ 1.70
Impairment charge					$ 22,620
Preferred shares authorized | shares			100,000	100,000		100,000
Adjusted liquidation preference value				$ 2,034
Common stock, issued | shares			4,699,956	4,704,267		4,699,956
Series A Convertible Preferred Stock [Member]
Aggregate annual expenses	$ 3,000
Series A Convertible Preferred Stock Purchase Agreement [Member]
Adjusted liquidation preference per share | $ / shares				$ 62
Adjusted liquidation preference value				$ 2,034
Common stock issued upon conversion | shares				678,009
Freeport-McMoRan Inc. [Member] | Series A Convertible Preferred Stock Purchase Agreement [Member]
Adjusted liquidation preference value		$ 2,000
Convertible preferred stock | shares			13.33			13.33
Common stock, issued | shares			666,667			666,667
Common stock issued upon conversion | shares				793,000
Cash consideration paid		$ 1,999
Freeport-McMoRan Inc. [Member] | Series A Convertible Preferred Stock Purchase Agreement [Member] | Series A Convertible Preferred Stock [Member]
Shares issued | shares			50,000			50,000
Decription of transfer property				(i) MEM accepting the transfer of the Property and replacing the Company as the permittee and operator of the WTP, and (ii) the payment of approximately $1 to the Company. The Series A Purchase Agreement contains customary representations and warranties on the part of the Company. As contemplated by the Acquisition Agreement and the Series A Purchase Agreement and as approved by the Company’s Board of Directors, the Company filed with the Secretary of State of the State of Wyoming Articles of Amendment containing a Certificate of Designations with respect to the Preferred Stock (the “Certificate of Designations”).
Preferred shares authorized | shares			50,000			50,000
Percentage of dividend rate				12.25%
Adjusted liquidation preference per share | $ / shares			$ 40			$ 40
Adjusted liquidation preference value			$ 2,000			$ 2,000
Freeport-McMoRan Inc. [Member] | Investor Rights Agreement [Member]
Percentage of outstanding shares acquire			16.86%			16.86%
Mt. Emmons Molybdenum Mining Properties [Member] | Freeport-McMoRan Inc. [Member]
Impairment charge			$ 22,620
Water Treatment Plant [Member] | Mt. Emmons Molybdenum Mining Properties [Member]
Aggregate annual expenses						$ 3,000	$ 3,000	$ 3,000
Water Treatment Plant [Member] | Mt. Emmons Molybdenum Mining Properties [Member] | United Kingdom, Pounds [Member]
Market price (in pounds per share) | £ / shares									£ 5	£ 11	£ 11

ASSETS HELD FOR SALE (Details N

ASSETS HELD FOR SALE (Details Narrative) - Three Parcels Of Land In Wyoming [Member] $ in Thousands	Jun. 30, 2016USD ($)a
Long Lived Assets Held-for-sale [Line Items]
Area of land | a	13
Carrying value | $	$ 653

DEBT (Details Narrative)

DEBT (Details Narrative) - Energy One LLC [Member] - USD ($) $ in Thousands	Aug. 11, 2016	Jun. 30, 2016	Dec. 31, 2015
Credit Agreement [Member]
Short-term Debt [Line Items]
Description of covenants		(i) the interest coverage ratio (EBITDAX to interest expense) to be less than 3.0 to 1; (ii) total debt to EBITDAX to be greater than 3.5 to 1; and (iii) the current ratio to be less than 1.0 to 1.0. EBITDAX is defined in the Credit Agreement as consolidated net income, plus non-cash charges.
Senior Credit Agreement [Member]
Short-term Debt [Line Items]
Fair value of real estate assets		$ 1,147
Net carrying value		1,860
Senior Credit Agreement [Member] | Current Liabilities [Member]
Short-term Debt [Line Items]
Outstanding amount of credit facility		6,000	$ 6,000
Senior Credit Agreement [Member] | Subsequent Event [Member]
Short-term Debt [Line Items]
Description of covenants	(i) a limited waiver of the negative financial covenants as it relates to the fiscal quarters ended March 31, 2016 and June 30, 2016, (ii) implementation of a new negative covenant that prohibits the Company’s consolidated general and administrative expenses (as defined) from exceeding $3,000 for each of the years ending December 31, 2016 and 2017, (iii) deferral of the next borrowing base redetermination until December 1, 2016, and (iv) the pledge of additional collateral by U.S. Energy consisting of certain real estate assets and the Company’s shares of Anfield Resources, Inc., which had a fair value of $1,147 as of June 30, 2016.
Wells Fargo Bank, National Association [Member] | Credit Facility [Member]
Short-term Debt [Line Items]
Outstanding amount of credit facility		6,000	6,000
Borrowing base		$ 6,000	$ 6,000
Description of collateral		Oil and gas producing properties and substantially all of the Company’s cash and equivalents.
Credit facility term		6 months
Interest rate		3.19%

EXECUTIVE RETIREMENT PLAN (Deta

EXECUTIVE RETIREMENT PLAN (Details Narrative) - Executive Retirement Policy [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Description about plan terms	The executive officer was required to serve as one of the designated executive officers for at least 15 years, reached the age of 60, and been an employee of the Company on December 31, 2010. Upon retirement, the executive was entitled to cash payments equaling 50% of the greater of (i) the amount of compensation earned as base cash pay on the final regular pay check or (ii) the average annual pay, less all bonuses, received over the last five years of employment with the Company.
Current portion of retirement liablity		$ 583	$ 583

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Contingent ownership interests	$ 3,593	$ 3,108
Quiet Title Action - Willerson Lease [Member] | Former Employee [Member] | Executive Severance and Non-Compete Agreement [Member]
Damages sought value	$ 1,800

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - $ / shares		Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock options outstanding		390,525	390,525
Stock options exercisable		371,248	365,693
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Stock options outstanding, price	[1]	$ 20.64	$ 20.64
Stock options exercisable, price	[1]	$ 20.99	$ 21.17
[1]	Represents the weighted average price.

SHAREHOLDERS' EQUITY (Details 1

SHAREHOLDERS' EQUITY (Details 1) - $ / shares		6 Months Ended
		Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding		390,525	390,525
Weighted Average	[1]	$ 20.64	$ 20.64
Options Exercisable		371,248	365,693
Weighted Average Exercisable	[1]	$ 20.99	$ 21.17
Exercise Price $9.00 to $9.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding		56,786
Weighted Average		$ 9
Contractual Term		8 years 6 months
Options Exercisable		45,675
Weighted Average Exercisable		$ 9
Exercise Price $12.48 to $12.48 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding		49,504
Weighted Average		$ 12.48
Contractual Term		7 years
Options Exercisable		48,004
Weighted Average Exercisable		$ 12.48
Exercise Price $13.92 to $17.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding		98,396
Weighted Average		$ 15.01
Contractual Term		3 years 3 months 18 days
Options Exercisable		98,396
Weighted Average Exercisable		$ 15.01
Exercise Price $22.62 to $30.24 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding		185,839
Weighted Average		$ 29.35
Contractual Term		1 year 7 months 6 days
Options Exercisable		179,174
Weighted Average Exercisable		$ 29.60
Exercise Price $9.00 to $30.24 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding		390,525
Weighted Average		$ 20.64
Contractual Term		3 years 8 months 12 days
Options Exercisable		371,249
Weighted Average Exercisable		$ 20.99
[1]	Represents the weighted average price.

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 07, 2016	Jan. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Share based compensation			$ 22	$ 65	$ 43	$ 140
Unrecognized expense related to unvested stock options			$ 99		$ 99
Number of shares are available for future grants			351,000		351,000
Common stock, per share			$ 1.70		$ 1.70
Option outstanding shares			390,525		390,525		390,525
Preferred shares authorized			100,000		100,000		100,000
Employee Stock Ownership Plan 1989 [Member]
Share based compensation				23
Description of ESOP					Employees become eligible to participate in the ESOP after one year of service which must consist of at least 1,000 hours worked.
Percentage of vesting					20.00%
Vested period					3 years
Expired period					7 years
Compensation expense					$ 265
Total shares held by the ESOP			340,726		340,726		789,110
Cash contributions							$ 170
Equity and Performance Incentive Plan 2012 [Member] | Restricted Stock [Member]
Share based compensation			$ 13	$ 42	$ 25	$ 84
Unrecognized expense related to unvested stock options			$ 75		$ 75
Option outstanding shares		56,786
Accrued Employee		$ 511
Equity and Performance Incentive Plan 2012 [Member] | Restricted Stock [Member] | Tranche One [Member]
Preferred shares authorized		16,667
Number of shares vested		5,556
Equity and Performance Incentive Plan 2012 [Member] | Restricted Stock [Member] | Tranche Two [Member]
Preferred shares authorized		11,111
Number of shares vested		5,556
Equity and Performance Incentive Plan 2012 [Member] | Restricted Stock [Member] | Tranche Three [Member]
Preferred shares authorized		11,111
Number of shares vested		5,555
Equity and Performance Incentive Plan 2012 [Member] | Four Officers [Member] | Restricted Stock [Member]
Option outstanding shares		56,786
Vested period		3 years
Equity and Performance Incentive Plan 2012 [Member] | Four Officers [Member] | Restricted Stock [Member] | Severance Agreements [Member]
Surrender shares							40,119
Subsequent Event [Member]
Common stock, per share	$ 2.49
Number of shares issued	65,748

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net operating loss carryovers	$ 7	$ 57
Description of limitation of use	The net operating loss carryovers may be carried back two years and forward twenty years from the year the net operating loss was generated. The net operating losses may be used to offset future taxable income and expire in varying amounts through 2035.
Minimum tax credit carry-forwards	$ 700

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - shares	3 Months Ended				6 Months Ended
	Jun. 30, 2016		Jun. 30, 2015		Jun. 30, 2016		Jun. 30, 2015
Total	1,079,645		492,917		923,821		492,917
Series A Convertible Preferred Stock [Member]
Total	678,009	[1]			522,155	[1]
Stock Options [Member]
Total	390,525		436,132	[1]	390,525		436,132	[1]
Unvested Shares Of Restricted Common Stock [Member]
Total	11,111		56,785	[1]	11,141	[1]	56,785	[1]
[1]	Includes weighted average number of shares for options issued during the period and shares of restricted stock that vested during the period.

SIGNIFICANT CONCENTRATIONS (Det

SIGNIFICANT CONCENTRATIONS (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Concentration Risk [Line Items]
Payable to major operator	$ 3,302	$ 4,159
Percentage of concentration risk	27.00%
Oil And Gas Sales [Member] | Operator B [Member]
Concentration Risk [Line Items]
Payable to major operator	$ 3,302	$ 4,159

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Recurring Measurements [Member] - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		$ 1,178
Level 1 [Member] | Executive Retirement Program Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Executive retirement liability
Level 1 [Member] | Crude Oil Derivatives Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Crude oil price risk derivatives
Level 1 [Member] | Equity Securities [Member] | Sutter Gold Mining Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites		31
Level 1 [Member] | Equity Securities [Member] | Anfield Resources, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites	[1]	1,147
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		174	1,647
Level 2 [Member] | Executive Retirement Program Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Executive retirement liability
Level 2 [Member] | Crude Oil Derivatives Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Crude oil price risk derivatives		174	1,634
Level 2 [Member] | Equity Securities [Member] | Sutter Gold Mining Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites			13
Level 2 [Member] | Equity Securities [Member] | Anfield Resources, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites	[1]
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total			238
Level 3 [Member] | Executive Retirement Program Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Executive retirement liability			584
Level 3 [Member] | Crude Oil Derivatives Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Crude oil price risk derivatives
Level 3 [Member] | Equity Securities [Member] | Sutter Gold Mining Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites
Level 3 [Member] | Equity Securities [Member] | Anfield Resources, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites	[1]		238
Total [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total		1,352	1,885
Total [Member] | Executive Retirement Program Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Executive retirement liability			584
Total [Member] | Crude Oil Derivatives Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Crude oil price risk derivatives		174	1,634
Total [Member] | Equity Securities [Member] | Sutter Gold Mining Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites		31	13
Total [Member] | Equity Securities [Member] | Anfield Resources, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securitites	[1]	$ 1,147	$ 238
[1]	For the period from September 1, 2015 when the Company acquired its investment in Anfield Resources, Inc. ("Anfield") through March 31, 2016, average daily trading volume was approximately 10,000 shares and management concluded that the quoted marked price was not an accurate indicator of fair value. Accordingly, alternative methods were used to determine fair value upon receipt of the shares in September 2015, which required classification under Level 3 of the fair value hierarchy. During the second quarter of 2016, average daily trading volume increased to more than 240,000 shares and management now classifies its investment in Anfield under Level 1 of the fair value hierarchy. As a result of the reclassification of Anfield to Level 1, the Company recognized an unrealized gain of $909 during the three and six months ended June 30, 2016.

FAIR VALUE MEASUREMENTS (Deta47

FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	7 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Mar. 31, 2016
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Average daily trading volume (in shares)			10,000
Level 2 [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Average daily trading volume (in shares)	240,000
Unrealized gain	$ 909	$ 909

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 07, 2016	Jul. 31, 2016	Jun. 30, 2016
Common stock fair value (in dollars per share)			$ 1.70
Subsequent Event [Member]
Number of shares issued	65,748
Common stock fair value (in dollars per share)	$ 2.49
Subsequent Event [Member] | IronHorse Resources LLC ("IronHorse") [Member]
Acquire interest		40.00%
Development costs		$ 9,600