Denver-based U.S. Energy Corp. (USEG) has entered into a memorandum of understanding with APEG I Partners to acquire all of APEG’s interest in 67 Bakken Shale wells in McKenzie and Williams counties, ND. The proposed deal includes about 1.1 million boe of proved developed reserves (79% oil) and 400 boe/d of current production across 1,600 net acres. Total consideration is $17.8 million, consisting of a combination of cash, stock and assuming APEG’s outstanding commodity derivatives. USEG said it also plans to establish an $8 million revolving credit facility. The deal is contingent upon regulatory and shareholder approval.