U.S. Energy Corp. reported that the commitment amount and the borrowing base under its wholly-owned Energy One LLC subsidiary's credit facility with BNP Paribas was increased from $75 million to $100 million regarding the commitment amount, and the borrowing base was increased from $28 million to $30 million on March 28, 2012. The redetermination was based on an increase in estimated reserves of 2,644,779 BOE at January 31, 2012 up from 2,286,302 BOE at June 30, 2011, a 15.7% increase. The Company has this facility in place to further its drilling, exploration and development activities.
Currently, the Company has no borrowings under its revolving credit facility and has the full $30 million available. The Company is in compliance with the financial covenants under the credit facility and the next re-determination of its borrowing base is scheduled to occur on or before September 30, 2012.