Enterra Energy Trust, U. S. Energy Corp. and Rocky Mountain Gas, Inc. Announce Acquisition Merger Merger Valued at Approximately $33.5 Million CALGARY, Alberta and RIVERTON, Wyo., Feb. 25 /PRNewswire-FirstCall/ -- Enterra Energy Trust ("Enterra") (Nasdaq: EENC; TSX: ENT.UN), U.S. Energy Corp. ("USE") (NASDAQ:USEG) and Rocky Mountain Gas, Inc. ("RMG") today announced that they, together with USE affiliate Crested Corp. ("Crested") (OTC:CBAG) (BULLETIN BOARD: CBAG) have entered into a letter of intent for the acquisition of RMG by Enterra pursuant to a merger under Wyoming law. USE and Crested jointly own approximately 92.7% of RMG, and, as signatories to the letter of intent, have agreed to vote their RMG shares in support of the merger. Completion of the merger, which is expected to close by May 1, 2005, is subject to approval of RMG's shareholders and regulatory and stock exchange approvals, as well as the satisfaction of a number of certain conditions, precedent, including Enterra's completion of due diligence with respect to RMG with satisfactory results and the parties entering into a mutually agreeable definitive pre-acquisition agreement. All dollar amounts in this release are in U.S. dollars. RMG holds natural gas assets in Montana and Wyoming. A portion of the Wyoming assets currently generates net/net production of approximately 2.2 million BTU's per day. RMG has approximately 130,000 net acres of production rights to coalbed methane. RMG also owns approximately 17% of Pinnacle Gas Resources, Inc, a private coalbed methane exploration and production company. Under the terms of the letter of intent, for a transition period of up to 12 months following the merger, USE will continue to provide personnel and advice to RMG under a consulting contract. The value of the merger is approximately $33.5 million. If the merger is approved, Enterra will pay the shareholders of RMG $30 million, by the issuance of approximately $20 million in exchangeable shares of Enterra Energy Corp. and approximately $10 million cash, plus will acquire RMG with outstanding long-term debt of approximately $3.5 million. The newly issued shares issued to RMG holders will be exchangeable on a one-for-one basis for Enterra trust units 12 months after the completion of the merger. The cash portion of the consideration may be paid by nominees of Enterra. "We believe that RMG's assets will be a good fit and beneficial to Enterra's assets and business plan," stated Reg J. Greenslade, President and CEO of Enterra. Mark J. Larsen, President of Rocky Mountain Gas, Inc. said, "The merger of Rocky Mountain Gas into Enterra makes good business sense for the RMG shareholders. U.S. Energy Corp., our largest shareholder, will remain in the gas business through its equity ownership in a larger, well-managed, well-financed oil and gas company that has substantial producing assets. Upon completion of the merger, RMG management looks forward to devoting their efforts towards the marketing and development of USE's significant interests in other natural resources, all of which are trading at "multi-year highs." "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive services, demand for services like those provided by the company and market acceptance risks, fluctuations in operating results, cyclical market pressures on the oil and natural gas industry and other risks detailed from time to time in the company's filings with Securities and Exchange Commission. Neither Enterra Energy Trust, U.S. Energy Corp. nor Rocky Mountain Gas, Inc. undertakes any obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise. DATASOURCE: U.S. Energy Corp. CONTACT: Reg Greenslade, President & CEO of Enterra Energy Trust, +1-403-213-2507; or EENC's Investor Relations Counsel, Linda Latman, +1-212-836-9609, or Rob Greenberg, +1-212-836-9611, both of The Equity Group Inc.; or Keith G. Larsen, President of U.S. Energy Corp., and CEO of Rocky Mountain Gas, Inc., +1-307-856-9271; or USE's Investor Relations Counsel, Rick Lutz of LC Group, +1-404-261-1196 Web site: http://www.theequitygroup.com/ Web site: http://www.enterraenergy.com/

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