<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
U.S. ENERGY CORP. FORM 10-K FOR THE YEAR ENDED MAY 31, 1997 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000101594
<NAME> U.S. ENERGY CORP.
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          MAY-31-1997
<PERIOD-START>                             JUN-01-1996
<PERIOD-END>                               MAY-31-1997
<CASH>                                       1,416,900
<SECURITIES>                                         0
<RECEIVABLES>                                1,590,100
<ALLOWANCES>                                    30,900
<INVENTORY>                                     96,000
<CURRENT-ASSETS>                             4,400,900
<PP&E>                                      14,843,000
<DEPRECIATION>                               8,802,100
<TOTAL-ASSETS>                              30,387,100
<CURRENT-LIABILITIES>                        1,393,900
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        66,500
<OTHER-SE>                                  12,657,100
<TOTAL-LIABILITY-AND-EQUITY>                30,387,100
<SALES>                                      3,258,000
<TOTAL-REVENUES>                             5,790,200
<CGS>                                        4,655,300
<TOTAL-COSTS>                                4,655,300
<OTHER-EXPENSES>                             4,718,600
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             140,800
<INCOME-PRETAX>                            (3,724,500)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (3,724,500)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (3,724,500)
<EPS-PRIMARY>                                    (.55)
<EPS-DILUTED>                                    (.55)