Exhibit 99.1

3602 S. Garland Rd.

Enid, OK 73703

580-822-1145

1/27/23

US Energy Corporation

1616 S. Voss, Ste. 725

Houston, TX 77057

Attn: Ryan Smith, CEO

Re: USEG 4Q 2022 Reserve Report “as of” 1/01/23

Dear Ryan:

As per your request, I have evaluated remaining reserves for 393 properties in Kansas, Louisiana, Mississippi, Montana, North Dakota, New Mexico, Oklahoma, Texas, and Wyoming. Production was updated for all the leases and reserve projections reviewed and revised. Operating expenses and price differentials were determined from your accounting system for all leases. Operator names reflect New Horizon Resources LLC that were in effect at year end. This report is organized by USEG Districts. This report uses the SEC 4Q22 first day of the month price forecast averaged over the prior 12 months as confirmed by industry websites and documented in attachment 06. A summary table with each well’s value along with other reports are included in support of this 4Q22 evaluation.

PROVED RESERVE VALUE “As Of” January 1, 2023

Total Proved Res

(PV10%)

$

174,237,772

(5,140,087 BO & 16,348,261 MCF Net)

P-DP RESERVE VALUE “As Of” January 1, 2023

Dist. 1

PDP

(PV10%)

$

18,151,768

( 358,212 BO & 3,702,597 MCF Net)

Dist. 2

PDP

(PV10%)

$

3,930,808

( 157,530 BO & 230,381 MCF Net)

Dist. 3

PDP

(PV10%)

$

22,643,547

( 774,290 BO & 901,892 MCF Net)

Dist. 4A

PDP

(PV10%)

$

34,561,367

( 982,668 BO & 1,274,118 MCF Net)

Dist. 4B

PDP

(PV10%)

$

33,987,326

( 640,346 BO & 8,931,856 MCF Net)

Dist. 5

PDP

(PV10%)

$

59,807,744

(2,195,755 BO & 1,276,095 MCF Net)

Total P-DP Reserves

(PV10%)

$

173,082,561

(5,108,802 BO & 16,316,938 MCF Net)

P-NP RESERVE VALUE “As Of” January 1, 2023

Dist. 4A

PNP

(PV10%)

$

1,155,211

( 31,286 BO & 31,323 MCF Net)

Total P-NP Reserves

(PV10%)

$

1,155,211

( 31,286 BO & 31,323 MCF Net)

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Monthly production was updated through 12/31/22 for operated leases where possible and through 10/31/22 for almost all the leases in this report. A rigorous analysis of OPEX was done for the high value leases. OPEX was forecast with fixed costs determined from USEG accounting data through 10/22. Consistent with prior reports, abandonment and salvage costs were not applied. Asset retirement obligations (ARO) are handled by USEG management.

USEG 4Q22 Reserve Summary
												Net				Net				Net				Net				Net
				Net				Net				Oil Rev				Gas Rev				Misc Rev				OPEX/TAX				CAPEX				PV0				PV10
				MBO				MMCF				$M				$M				$M				$M				$M				$M				$M				%
TOTAL		Proved			5,140.087				16,348.261				466,045.623				93,371.911				3,127.326				227,364.511				200.000				334,980.349				174,237.772				100	%
1		PDP			358.212				3,702.597				33,284.519				27,085.136				0.000				26,189.829				0.000				34,179.826				18,151.768				10	%
2		PDP			157.530				230.381				14,698.289				1,454.607				0.000				9,722.627				0.000				6,430.270				3,930.808				2	%
3		PDP			774.290				901.892				72,275.397				5,613.770				0.000				33,486.461				0.000				44,402.706				22,643.547				13	%
4A		PDP			982.668				1,274.118				92,303.588				6,969.339				0.000				39,059.795				0.000				60,213.132				34,561.367				20	%
4B		PDP			640.346				8,931.856				58,703.289				46,951.899				0.000				35,372.138				0.000				70,283.050				33,987.326				20	%
5		PDP			2,195.755				1,276.095				191,820.301				5,076.032				3,127.326				82,233.682				0.000				117,789.976				59,807.744				35	%
TOTAL		PDP			5,108.802				16,316.938				463,085.383				93,150.784				3,127.326				226,064.532				0.000				333,298.961				173,082.561				100	%
4A		Total			31.286				31.323				2,960.240				221.127				0.000				1,299.979				200.000				1,681.388				1,155.211				100	%
TOTAL		PDNP			31.286				31.323				2,960.240				221.127				0.000				1,299.979				200.000				1,681.388				1,155.211				100	%
OPER		PDP			4,358.416				14,510.044				393,393.803				83,167.327				0.000				189,881.306				0.000				286,679.824				148,437.526				86	%
NON-OP		PDP			750.39				1,806.89				69,691.58				9,983.46				3,127.33				36,183.23				0.00				46,619.14				24,645.03				14	%
TOTAL		PDP			5,108.802				16,316.938				463,085.383				93,150.784				3,127.326				226,064.532				0.000				333,298.961				173,082.561				100	%

Wellhead oil price averaged $90.67/BO throughout the economic life of the properties and included deductions for transportation & quality. Wellhead gas price averaged $5.71/MCF throughout the economic life of the properties and included deductions for marketing, transportation & quality. Supporting 4Q22 documents for price assumptions, differentials and operating costs are included in support of this evaluation.

USEG - 2022 Q4 SEC Price Forecast
		SEC WTI				SEC HH				SEC Prop
		$/BO				$/MCF				$/Bbl
1/1/2022		$	75.21			$	3.72			$	47.17
2/1/2022		$	88.20			$	5.58			$	54.94
3/1/2022		$	103.41			$	4.28			$	60.82
4/1/2022		$	99.27			$	5.48			$	57.12
5/1/2022		$	104.69			$	6.84			$	54.39
6/1/2022		$	115.26			$	8.46			$	51.79
7/1/2022		$	108.43			$	6.46			$	51.41
8/1/2022		$	93.89			$	8.37			$	46.79
9/1/2022		$	86.61			$	8.95			$	45.40
10/1/2022		$	79.49			$	6.29			$	36.33
11/1/2022		$	88.37			$	5.08			$	36.88
12/1/2022		$	81.22			$	6.80			$	31.50
2022 Q4 Avg		$	93.67			$	6.36			$	47.88
Per R-S 1st of Month WTI & HH											51	%

Proven Developed Oil and Gas reserves, as shown in the E-mailed reports, are reserves that geological and engineering data indicate to be recoverable from known oil and gas reservoirs through existing wells with existing operating methods.

The reserves and values included in this report are estimates only and should not be construed as being exact quantities. The reserve estimates were performed using accepted engineering practices and were primarily based on historical rate decline analysis for existing producers. As additional pressure and production performance data becomes available, reserve estimates may increase or decrease in the future. The revenue from such reserves and the actual costs related may be more or less than the estimated amounts. Because of governmental policies and uncertainties of supply and demand, the prices actually received for the reserves included in this report and the costs incurred in recovering such reserves may vary from the price and cost assumptions referenced. Therefore, in all cases, estimates of reserves may increase or decrease as a result of future operations.

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In evaluating the information available for this analysis, items excluded from consideration were all matters as to which legal or accounting, rather than engineering interpretation, may be controlling. As in all aspects of oil and gas evaluation, there are uncertainties inherent in the interpretation of engineering data and such conclusions necessarily represent only informed professional judgments.

The title to the property has not been examined nor has the actual degree or type of interest owned been independently confirmed. A field inspection of the properties is not usually considered necessary for the purpose of this report.

Information included in this report includes the graphical decline curves, historical and projected production and cash flow economic results, and miscellaneous individual well information. Additional information reviewed will be retained and is available for review at any time. I can take no responsibility for the accuracy of the data used in the analysis, whether gathered from public sources or otherwise.

Reserve classifications conform to the 2007 SPE/WPC/AAPG/SPEE Petroleum Resource Management System (SPE-PRMS) which are available for review in a 49 page document at www.spee.org/images/PDFs/ReferencesResources/Petroleum_Resources_Management_System_2007.pdf. A 5 page abbreviated summary of the proved reserve classes is attached to the report.

Sincerely,

Don Jacks,

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