Corporate Presentation August 19, 2015

Corporate Presentation August 19, 2015

Safe Harbor Disclosure Please carefully read the following disclaimer: The information discussed in this Presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the Securities Act ) and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act ). All statements made in or in conjunction with this Presentation, other than statements of historical fact, are forward-looking statements. Examples of such statements in this Presentation may relate to planned capital expenditures for oil and gas exploration and development projects; cash expected to be available for continued work programs with all our industry partners, and for those projects as to which we do not presently have industry partners; recovered volumes and values of oil and gas approximating third-party estimates of oil and gas reserves; current and anticipated drilling and completion activities; anticipated production and price differentials and decline rates from initial production rates, over time, of the daily volume of oil and natural gas produced from wells completed in the Williston Basin and elsewhere; the relationship of national oil and gas natural prices to prices paid for such production in the Williston Basin and other areas in which we operate; potential well spacing for wells to be drilled; future cash flows and borrowings; pursuit of potential acquisition opportunities; our expected financial position; our business strategy; and other plans and objectives for future operations. These forward-looking statements are typically identified by their use of terms and phrases such as may, expect, estimate, project, plan, believe, intend, achievable, anticipate, will, continue, potential, should, could, and similar terms and phrases. Though we believe that the expectations reflected in these statements are reasonable, they involve certain assumptions, risks and uncertainties. Results could differ materially from those anticipated in these statements as a result of numerous factors. These factors include, but are not limited to, those detailed in the section entitled Risk Factors in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and other filings we make with the Securities and Exchange Commission, all of which are incorporated by reference in this Presentation. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements made above, elsewhere in this Presentation and as incorporated from our public filings. All of such forward-looking statements are made as of the date of this Presentation, and except as otherwise required under securities laws, we do not assume a duty to update any forward-looking statement, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise. Amounts budgeted for each regional drilling program are subject to change based on a number of factors including, but not limited to, timing, well costs, drilling and completion success, availability of capital and weather-related issues. Anticipated well performance could also vary significantly from those modeled internally. Furthermore, funds allocated for specific drilling programs under the 2015 CAPEX budget may be re-allocated to other drilling programs if initial results are below expectations. IP rates, test results and similar data from exploration and development activities are not necessarily reflective of the production, reserves or cash flow that may ultimately be generated from the well in question. Our ability, or the ability of the relevant operator, to maintain expected levels of production from a well is subject to numerous risks and uncertainties, including those discussed and referenced above. NASDAQ: USEG WWW.USNRG.COM 2

Company Overview Oil & Gas Assets Bakken/Three Forks North Dakota Montana Eagle Ford / Buda / Austin Chalk Texas Conventional Louisiana Texas Molybdenum Asset Colorado Founded in 1966 (In business 49 years) Listed on the Nasdaq (40 years) Trading Symbol: USEG Background in natural resource and oil & gas development Strong balance sheet (minimal debt) Proven drilling inventory in prolific US basins NASDAQ: USEG WWW.USNRG.COM 3

Market Data Independent E&P Company Focused on Exploring for and Producing Domestic Oil and Natural Gas Exchange: NASDAQ (40 years) Ticker Symbol: USEG Price per Share (8/12/2015) $0.62 Market Capitalization (6/16/2015) $16.72MM Avg. Daily Trade Volume (Last 3 Months) ~124,000 52 Week Price Range 0.36 4.24 Shares Outstanding (8/5/2015) 28.05 MM NASDAQ: USEG WWW.USNRG.COM 4

Corporate Overview - Operations Interest in 115,563 gross (11,337 net) acres primarily located in South Texas and the Williston Basin in North Dakota Participate in 142 gross (20.87 net) producing wells in North Dakota, Texas & Louisiana (6/30/15 ) 14 gross wells in progress (North Dakota 6/30/15) Second Quarter 2015 Average Net Daily Production 897 BOE/D Proved Reserves (Year End 2014) 4.65 MBOE NASDAQ: USEG WWW.USNRG.COM 5

2015 Overview First six months: Drilled and completed 1 gross Buda development and 1 gross E-bench Austin Chalk test well in South Texas Second six months: Preserve in-ground portfolio value / defer drilling and testing initiatives until commodity price recovery (South Texas) We continue to participate in drilling and development activity in the Williston Basin of North Dakota to maintain base production Actively pursuing commodity price driven acquisitions Targeted Bankable Acquisitions (operatorship): ~ $5-50 million Actively pursuing banking / financing sources to execute on acquisition initiatives NASDAQ: USEG WWW.USNRG.COM 6

World Liquid Fuels Production and Consumption Balance NASDAQ: USEG WWW.USNRG.COM 7

World Liquid Fuels Consumption NASDAQ: USEG WWW.USNRG.COM 8

How Long Will U.S. Production Hold Up? NASDAQ: USEG WWW.USNRG.COM 9

E&P Assets NASDAQ: USEG WWW.USNRG.COM 10

Williston Basin Drilling Programs Bakken / Three Forks Formations Drilling programs in Williams, McKenzie and Mountrail Counties Interests in 58 participated drilling units* - 3,511 net participated acres Overall potential for 325** 450*** gross drilling locations ~10** - 15*** net wells on a going forward basis Second quarter 2015 average net daily production 557 BOE/D Beginning to see reduced well costs and accretive acquisition opportunities due to industry downturn in commodity price Actively seeking Williston Basin opportunities Looking to consolidate acreage position and operate Bolt on opportunities (distressed commodity price) * Held by production - majority 1,280 acre spacing ** Assumes 3 Bakken and 3 Three Forks wells per formation, per 1280 acre unit *** Assumes 4 Bakken and 4 Three Forks wells per formation, per 1280 acre unit NASDAQ: USEG WWW.USNRG.COM 11

Williston Basin Assets 102 Gross (10.32 net) participated wells (6/30/2015) USEG Active Area ~325*-450** Overall gross potential locations ~10*-15* Overall net potential well participation Williston *Assumes 3 Bakken and 3 Three Forks wells per formation, per 1280 acre unit **Assumes 4 Bakken and 4 Three Forks wells per formation, per 1280 acre unit NASDAQ: USEG WWW.USNRG.COM 12

Partnered with leading Williston Basin Operators Participation in Gross Wells Net Wells 26 6.61 Participation in Gross Wells Net Wells 18 2.91 Participation in Gross Wells Net Wells 30 0.36 Participation in Gross Wells Net Wells 13 0.15 Participation in Gross Wells Net Wells 18 0.03 Participation in Gross Wells Net Wells 4 0.05 Participation in Gross Wells Net Wells 2 0.04 Note: Participation in gross and net wells 3/31/15 Participation in Gross Wells Net Wells 2 0.13 Participation in Gross Wells Net Wells 1 0.01 NASDAQ: USEG WWW.USNRG.COM 13

North Dakota Wells in Progess Well Name Operator Formation Spud Date Working Interest Net Revenue Interest Status Satter 21X-01B XTO Bakken 10/22/2014 0.13% 0.10% Drilled; Comp Pending Satter 21X-01F XTO Three Forks 10/26/2014 0.13% 0.10% Drilled; Comp Pending Satter 21X-01C XTO Three Forks 10/27/2014 0.13% 0.10% Drilled; Comp Pending Satter 31X-1H XTO Three Forks 1/1/2015 0.13% 0.10% Drilled; Comp Pending Satter 31X-1D XTO Bakken 2/6/2015 0.13% 0.10% Drilled; Comp Pending Satter 31X-1G2 XTO Three Forks 3/12/2015 0.13% 0.10% Drilled; Comp Pending Satter 31X-1CXD XTO Bakken 3/14/2015 0.13% 0.10% Drilled; Comp Pending Rita 44X-34CXD XTO Bakken 3/7/2015 0.20% 0.16% Drilled; Comp Pending Rita 44X-34C XTO Bakken 4/3/2015 0.20% 0.16% Drilled; Comp Pending Rita 44X-34G XTO Three Forks 4/11/2015 0.20% 0.16% Drilled; Comp Pending Rita 44X-34BXC XTO Bakken 4/20/2015 0.20% 0.16% Drilled; Comp Pending Rita 44X-34H XTO Three Forks 4/27/2015 0.20% 0.16% Drilled; Comp Pending Rita 44X-34D XTO Bakken 6/14/2015 0.20% 0.16% Drilled; Comp Pending Rita 44X-34HXE XTO Three Forks 6/16/2015 0.20% 0.16% Drilling Average: 0.17% 0.13% NASDAQ: USEG WWW.USNRG.COM 14

South Texas Drilling programs in Zavala and Dimmit Counties, Texas 30,753 gross (7,826 net) participated acres Additional leasing opportunities in region Multiple formation development potential South Texas Zavala Frio Texas Dimmit La Salle NASDAQ: USEG WWW.USNRG.COM 15

South Texas Multiple Formation Potential Stacked hydrocarbon bearing formation potential in South Texas NASDAQ: USEG WWW.USNRG.COM 16

Booth-Tortuga Buda Activity Map 17,356 gross acres 4,017 net acres Zavala 16 gross producing Buda wells ~ 90% oil / 10% gas EURs: ~200-400 Mboe ~30* gross (~9* net) potential locations based on 320 acre spacing Willerson Lease Contango Operated #3H #5Hz #2H #1H Legend!A Drill Path Stat Dimmit U.S. Enercorp Operated Non-Participated Buda Wells In Progress Producing * Subject to geological continuity & additional delineation of acreage and ultimate spacing configuration NASDAQ: USEG WWW.USNRG.COM 17

Eagle Ford Potential 22,321 gross (5,506 net) acres in Zavala and Dimmit County, TX with Contango and U.S. Enercorp Leona River Eagle Ford test well anticipated to be drilled 2016 Zavala EXCO Drilling Activity Contango Operated Neighboring operator EXCO has announced 13 Eagle Ford wells immediately NW of Leona River with initial production rates of 839 BO/D Revised well costs ~ $6 $7 million Monitoring regional drilling and completion techniques Buda logs indicate Eagle Ford may hold further development potential at Booth - Tortuga Booth-Tortuga Acreage Block Dimmit Anticipated 2016 Eagle Ford test well (Contango) Leona River Acreage Block NASDAQ: USEG WWW.USNRG.COM 18

US Enercorp E bench (Austin Chalk) 8,432 gross acres South Texas 2,320 net acres Evaluating production data from two drilled and completed wells, the S. McKnight 1317 HB and the S. McKnight 1305 B wells ~$1.5-3.0 million drill and complete cost (well costs vary per well design) EURs: ~70-100 Mboe Potential for ~200 gross (60 net) wells under 40 acre spacing Estimated ~25% IRR @ $55.00 oil price NASDAQ: USEG WWW.USNRG.COM 19

Financials NASDAQ: USEG WWW.USNRG.COM 20

Select Financial Data Strong Balance Sheet Cash and Cash Equivalents $4,067 Total Assets $95,418 Total Debt (6/30/15) $100 MM total credit facility - $7.0MM borrowing base with Wells Fargo Financial Metrics per Share (6/30/15) [ $ Thousands ] EBITDAX for the Six Months Ended June 30, 2015 (Unaudited) ($1,647) $6,000 Total Shareholder Equity (6/30/15) $77,640 Cash and Equivalents $0.15 Investment in Oil & Gas $2.20 Other Assets $1.06 Total Book Value of Assets $3.40 NASDAQ: USEG WWW.USNRG.COM 21

USEG Stock Performance $1.90 Stock Price $1.70 $1.50 $1.30 $1.10 $0.90 $0.70 $0.50 $0.30 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 3/24 3/31 4/7 4/14 4/21 4/28 5/5 5/12 5/19 5/26 6/2 6/9 6/16 6/23 6/30 7/7 7/14 7/21 7/28 8/4 8/11 600,000 400,000 200,000 Volume YTD Months ~124,000/day 0 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 3/24 3/31 4/7 4/14 4/21 4/28 5/5 5/12 5/19 5/26 6/2 6/9 6/16 6/23 6/30 7/7 7/14 7/21 7/28 8/4 8/11 NASDAQ: USEG WWW.USNRG.COM 22

Growth Metrics Oil & Gas Revenue Cash Flow from Operations $40.0 M $25.0 M $35.0 M $30.0 M $20.0 M $25.0 M $15.0 M $20.0 M $15.0 M $10.0 M $10.0 M $5.0 M $5.0 M $0.0 M 2010 2011 2012 2013 2014 $0.0 M 2010 2011 2012 2013 2014 Reserves (BOE) $5.0 M $4.5 M $4.0 M $3.5 M $3.0 M $2.5 M $2.0 M $1.5 M $1.0 M $0.5 M $0.0 M 2010 2011 2012 2013 2014 NASDAQ: USEG WWW.USNRG.COM 23

Management Track Record of Success Keith G. Larsen, Chief Executive Officer and Chairman of U.S. Energy Corp. Mr. Larsen has over 25 years of experience in the natural resource sector including oil and gas, mineral project development and financing. Mr. Larsen has played a key role in the divesture of the Company s uranium assets while transitioning the Company s focus towards the development of its oil and gas portfolio, which include numerous operating partnerships. (Statoil, Petroquest Energy, Yuma, Contango, Zavanna, LLC, & US Enercorp.) David Veltri is the President and COO of U.S. Energy Corp. Mr. Veltri has over 34 years of oil and gas industry experience. Mr. Veltri has managed and engineered all phases of upstream and mid-stream oil and gas operations. Prior to joining U.S. Energy Corp., Mr. Veltri was the Chief Operating Officer of Denver, Colorado based Emerald Oil, Inc. While at Emerald, Mr. Veltri was played a key role in converting the company from a non-operated position into an operator through the development of a three rig drilling program with field operations from well spud to sales. Mr. Veltri s previous roles include Vice President / General Manager of Baytex Energy USA Ltd., where he managed that company's transition in the Williston Basin from non-operator to an operated upstream oil and gas business with working interests in over 100,000 acres, 100 wells, a two-rig drilling program, completion operations and an active acquisition program. Other previous roles include Production Manager at El Paso E&P Company, Vice President of Production and Drilling at Yuma E&P Company, Project Engineer at EOG Resources. NASDAQ: USEG WWW.USNRG.COM 24

Summary Takeaways: ~ 900 net BOE/D base production with proven additional development potential in North Dakota and South Texas Optimize current portfolio: sell non core interests, consolidate interests, transition into operations in due course Actively seeking new sources of funding (liquidity & sustainability) Actively seeking distressed asset opportunities due to current commodity price (targeted bankable acquisitions: ~ $5 - $50 million) NASDAQ: USEG WWW.USNRG.COM 25

Shareholder Contact: NASDAQCM: USEG Headquarters: U.S. Energy Corp. 877 N. 8 th W. Riverton, Wyoming 82501 P. 1-800-776-9271 F. 1-307-857-3050 Investor Relations: Reggie Larsen Director of Investor Relations P. 1-800-776-9271 M. 1-307-851-4043 Reggie@usnrg.com Web site: www.usrng.com NASDAQ: USEG WWW.USNRG.COM 26