Corporate | 4 March 2014 23:41
Deutsche Rohstoff AG / Key word(s): Disposal
04.03.2014 23:41
Dissemination of a Corporate News, transmitted by DGAP - a company of EQS
Group AG.
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Deutsche Rohstoff: Tekton Energy signs contract for sale of its
Windsor-Project for USD 200 million
Option for additional USD 60 million / New US-oil project in preparation
Heidelberg/Denver. Tekton Windsor LLC, 100% subsidiary of Tekton Energy,
signed a contract today, in which the company sells its main assets of the
Windsor project in and around Windsor/Colorado. The final validity of the
contract is still subject to Due Diligence by the purchaser, which must be
completed by 30th May 2014 at the latest (Closing). The parties have agreed
that the buyer will not be mentioned by name yet. The sales price amounts
to USD 200 million in cash. Of this, the buyer has already paid a
creditable but non-repayable retainer fee in the amount of USD 18 million
into an escrow account. Tekton will receive this amount even in the event
of withdrawal from the contract by the buyer.
Besides some minor assets, Tekton will retain key tracts of acreage which
the management of Tekton rates as highly prospective. The buyer has
preemption for this area, which however, has to be exerted before the
commencement of the intended drilling program in this area. Should the
buyer make use of its preemption, Tekton will receive further USD 60
million.
In addition, the parties have agreed that the purchase will apply with an
effective date of 1 January 2014. This means that the buyer will refund all
expenditures incurred from 1 January, and in return receives all the
proceeds from that date. Since most horizontal wells were drilled in the
aftermath of 1 January and have been producing for a few weeks, this means
additional net cash flow for Tekton in a double-digit million range.
Over the last year, Tekton's Management already identified and evaluated an
appropriate follow-up project in the US. Since the beginning of 2014,
contract negotiations for acreage acquisitions were initialized.
Titus Gebel, CEO of Deutsche Rohstoff AG, commented: "We assume that the
contract will be completed effectively. Therewith, the Windsor project
would have reached a gratifying early and highly profitable financial
completion. The experienced team of Tekton is ready to repeat this success
with a new project. "
Thomas Gutschlag, CFO, adds: "This sale brings a high profit and ensures an
early redemption of our bond. The sale proceeds also give us significant
financial flexibility in the development of further oil and gas projects in
the United States."
Deutsche Rohstoff's share in Tekton stands at 72.15%. Tekton's ongoing
operations are financed with loans from Deutsche Rohstoff. Total
receivables against Tekton currently amount to USD 30 million. These loans
have to be returned first. The remaining proceeds from the sale plus
Tekton's other available cash can then be distributed to shareholders
according to their stake in the company. Deutsche Rohstoff has in addition
to the loan invested another USD 30 millon as equity into Tekton.
Meanwhile, the drilling program of Tekton is progressing as planned in
agreement with the buyer. Five additional horizontal wells, two with
extended horizontal reach, will go into production within the next few
days. Nine further holes are drilling and will be connected within the next
eight to ten weeks.
Tudor, Pickering, Holt & Co. acted as exclusive financial advisors to
Tekton Energy, LLC, and Davis, Graham & Stubbs LLP served as legal advisors
for the transaction.
Heidelberg, 4 March 2014
Deutsche Rohstoff (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 oil & gas and so called high
tech metals such as tin, tungsten, and rare earth metals. All projects are
located in political stable countries with high environmental standards.
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:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de
04.03.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: 06221-87100-11
Fax: 06221-87100-22
E-mail: gutschlag@rohstoff.de
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)
End of Announcement DGAP News-Service
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