Corporate | 4 June 2012 09:45


Deutsche Rohstoff AG: Tekton Energy reports sucessful drilling and first production of new wells


Deutsche Rohstoff AG / Key word(s): Miscellaneous

04.06.2012 / 09:45


Deutsche Rohstoff AG: Tekton Energy reports successful drilling and first production of new wells
Nine out of nine drilling success/Six wells already producing/Oilprice hedged at 90 USD

Denver/Heidelberg. Deutsche Rohstoff AG's (DRAG) US-Oil subsidiary Tekton Energy reported today that it has finished drilling on its Frye Farms drilling pad. Three wells have been drilled from the Frye pad and all were successful as determined by wire line conveyed logs.

Titus Gebel, CEO of DRAG, stated: 'This brings Tekton's total drilling activity to nine successes out of nine wells drilled, which is a fantastic 100% success rate in an incredibly short time frame. Now that Tekton's geological model is proven, we will switch to horizontal wells to accelerate production output and value creation.'

Tekton also announced first production from the three-well Pavistma pad beginning May 30. Production amounts from these new wells will be announced in the coming months as data becomes available. Production will be predominantly oil with a small amount of associated gas.

Therefore, Tekton has currently six wells in production and the newly drilled Frye Farms wells are supposed to come into production early July. All nine wells are part of the Windsor project located in the northwest portion of the Wattenberg Field in Colorado. 60% of the production is hedged against oil prices below 90 USD of WTI (West Texas Intermediate) by so called 'costless collars'.

In addition to the currently executed vertical drilling campaign, Tekton is preparing to acquire a 3D seismic survey in July with a horizontal drilling program to follow.

Heidelberg, 04 June 2012

Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company's focus is placed on gold, oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. For more information please visit www.rohstoff.de .

Contact:

Thomas Gutschlag

gutschlag@rohstoff.de

+49 6221 871 000



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