U.S. Energy Corp. Reaches Final Investment Decision to Build Big Sky Carbon Hub Facility; Targets Commercial Operations in Q1 2027 (Form 8-K)

U.S. Energy Corp. Reaches Final Investment Decision to Build Big Sky Carbon Hub Facility; Targets Commercial Operations in Q1 2027

HOUSTON, Tx., March 18, 2026 - U.S. Energy Corp. (NASDAQ: USEG) ("U.S. Energy" or the "Company"), an integrated energy company advancing a diversified industrial gas, energy, and carbon management platform, today announced that it has reached a Final Investment Decision ("FID") for the construction of its processing facility at the Big Sky Carbon Hub ("Big Sky") in Montana, and executed an Engineering, Procurement, and Construction ("EPC") agreement with CANUSA EPC under a fixed-scope EPC contract structure.

"Today's announcements represent the culmination of 18 months of deliberate, disciplined execution, and the beginning of what we believe will be a transformational chapter for U.S. Energy," said Ryan Smith, President and Chief Executive Officer of the Company. "We have reached FID, signed our EPC contract with CANUSA EPC, and construction is underway at Big Sky. Our recent successful capital markets activity has pulled forward both the timeline and certainty of construction, and today we are putting that capital to work. CANUSA EPC brings precisely the construction and execution expertise required to deliver a complex, integrated industrial gas and carbon management facility on time and on budget. With three producing wells online, final engineering complete, a purpose-built plant site secured, and EPA MRV applications submitted, every element of a de-risked project is in place.

Mr. Smith continued, "As global helium markets continue to tighten amid ongoing supply disruptions and increasing geopolitical uncertainty, we believe Big Sky is uniquely positioned to provide a secure, domestic source of this critical gas alongside its broader industrial gas and carbon management capabilities. We expect the market to increasingly recognize the differentiated, multi-revenue nature of this platform as we move through construction and toward cash flow generation at Big Sky in early 2027."

EPC Agreement with CANUSA EPC

U.S. Energy has entered into an EPC agreement with CANUSA EPC, a leading construction and engineering services provider. Under the terms of the agreement, CANUSA EPC will perform engineering, equipment procurement, fabrication, construction, and commissioning for the facility under a fixed-scope EPC structure. The agreement establishes a project budget with a defined contingency, providing schedule accountability and execution oversight from a proven partner. The execution of the EPC agreement represents one of the final pre-FID milestones required before commencing construction and was completed concurrently with the FID.

Initial expenditures are directed toward site preparation, procurement of long-lead equipment, and mobilization of the CANUSA EPC project team.

About the Big Sky Carbon Hub

The Big Sky Carbon Hub is a vertically integrated industrial gas and carbon management asset that combines helium production, CO₂ recovery and sequestration, and enhanced oil recovery ("EOR") - all across Company-controlled and operated acreage. Through multiple strategic transactions over the past 18 months, U.S. Energy has assembled approximately 80,000 net acres in Montana's Kevin Dome, with a third-party resource evaluation estimating a Phase 1 resource of approximately 1.3 billion cubic feet ("Bcf") of helium and 444 Bcf of naturally occurring CO₂, underpinning a resource life of more than 50 years.

The processing facility is designed for approximately 8.0 MMcf/d of inlet capacity. At initial operations, the Company expects annual production of approximately 12 million cubic feet of high-purity helium and approximately 125,000 metric tons of refined CO₂ for use in EOR operations and permanent carbon sequestration. Our three already-drilled industrial gas wells are expected to deliver stable, low-decline production, supplying the initial processing facility for multiple years without the need for additional drilling.

Construction Timeline and Key Milestones

With FID achieved, the EPC contract executed, and capital spending underway, the Company is advancing the following near-term priorities:

Diversified Revenue Profile

The Big Sky Carbon Hub is positioned to generate three distinct, recurring revenue streams:

ABOUT U.S. ENERGY CORP.

U.S. Energy Corp. (NASDAQ: USEG) is building an integrated energy and carbon management platform. The Company owns and operates the Big Sky Carbon Hub and Cut Bank oil field in Montana, generating three independent revenue streams - helium, carbon management, and oil - from a wholly owned and operated asset base. U.S. Energy is positioned at the intersection of critical supply, domestic energy production, and federal energy policy. More information can be found at www.usnrg.com.

INVESTOR RELATIONS CONTACT

Mason McGuire

[email protected]

(303) 993-3200

www.usnrg.com