Corporate | 2 February 2016 10:31
Deutsche Rohstoff AG / Key word(s): Miscellaneous
02.02.2016 10:31
Dissemination of a Corporate News, transmitted by DGAP - a service of EQS
Group AG.
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Deutsche Rohstoff: US subsidiaries prepare additional oil & gas wells
New wells to start drilling by end of Q1/Additional acreage acquired
Heidelberg/Denver. Cub Creek Energy (CCE) and Elster Oil and Gas (EOG)
report that they continue to invest in oil and gas development in Colorado.
Deutsche Rohstoff is the majority shareholder of both companies. During the
first quarter, activity will be accelerated and result in a number of new
wells and further production:
- EOG will participate in seven new non-operated wells planned to spud by
the end of the first quarter of 2016 from the same pad as the
previously drilled 5 wells that commenced production in September 2015.
These five wells continue to show excellent results with current net
monthly production at 28,244 BOE. Total revenue for EOG through the end
of January is estimated at USD 2.3 million.
- Nine horizontal wells were recently drilled in an area where EOG holds
mineral rights through its 100% owned subsidiary Diamond Valley LLC.
Production will start later this year generating revenues for EOG. At
current oil prices revenues are estimated to be USD 370,000 over the
first year of production. Elster does not have to contribute investment
capital as the property is a non-operated asset that generates royalty
revenue.
- CCE was able to sign a new development agreement adjacent to existing
leases that results in securing an additional drilling pad. CCE
estimates that this pad allows for up to 12 new well locations. Overall
the drilling inventory has increased beyond 150 gross wells in core
Wattenberg.
- CCE is currently preparing a seismic shoot over parts of its leases.
The seismic is planned for early March. After the interpretation of the
seismic CCE will potentially have up to four drilling pads ready for
operations. Drilling on the first pad could commence as early as late
March 2016 with timing mainly dependent on oil price development.
- CCE will take part in two offset wells drilled by a large operator in
the basin with a 36% working interest in each well, totaling USD 2.3
million invested drilling capital for both wells combined. CCE expects
excellent results from these two wells as they are drilled in a well
known area with prolific production. The wells are anticipated to be
spud by the end of the first quarter of 2016.
Bob Gardner, CEO of CCE and EOG, commented: "Despite the current oil price
environment, we have continued to develop our acreage over the past few
months. As a result, we have an excellent drilling inventory available for
execution and intend to drill as many wells as economically reasonable in
the coming months. Furthermore, we continue to explore opportunities to
expand our inventory and acquire additional production."
Heidelberg, 2 February 2016
Deutsche Rohstoff identifies, develops and divests attractive resource
projects in North America, Australia and Europe. The focus is on the
development of oil and gas opportunities within the United States. Metals,
such as gold, copper, rare earth elements, tungsten and tin complete our
portfolio. For more information please visit www.rohstoff.de.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag
Tel. +49 6221 871 000
info@rohstoff.de
02.02.2016 The DGAP 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: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of Announcement DGAP News-Service
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