<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
U.S. ENERGY CORP. FORM 10-Q FOR THE QUARTER ENDED AUGUST 31, 1997 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000101594
<NAME> U.S. ENERGY CORP.
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          MAY-31-1998
<PERIOD-START>                             JUN-01-1997
<PERIOD-END>                               AUG-31-1997
<CASH>                                       4,293,600
<SECURITIES>                                         0
<RECEIVABLES>                                2,522,000
<ALLOWANCES>                                         0
<INVENTORY>                                    107,000
<CURRENT-ASSETS>                             7,811,000
<PP&E>                                      14,901,700
<DEPRECIATION>                               8,947,900
<TOTAL-ASSETS>                              33,787,700
<CURRENT-LIABILITIES>                        4,419,000
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        66,600
<OTHER-SE>                                  13,380,800
<TOTAL-LIABILITY-AND-EQUITY>                33,787,700
<SALES>                                      2,466,500
<TOTAL-REVENUES>                             2,860,600
<CGS>                                           14,500
<TOTAL-COSTS>                                1,238,900
<OTHER-EXPENSES>                               922,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              15,900
<INCOME-PRETAX>                                683,800
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            683,800
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   683,800
<EPS-PRIMARY>                                        0
<EPS-DILUTED>                                      .10