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Deutsche Rohstoff AG: Update on US oil and gas activities

Deutsche Rohstoff AG / Key word(s): Miscellaneous

14.04.2016 10:04

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Deutsche Rohstoff: Update on US oil and gas activities
Cub Creek signs contract for drilling rig/New Elster wells underway

Heidelberg/Denver. Cub Creek Energy (CCE) and Elster Oil and Gas (EOG)
drive forward the development of their areas in the core area of the
Wattenberg field in Colorado as planned:

- CCE signed a contract with a drilling contractor this week. The goal is
to successively drill 20 wells from two pads starting around 1 June. There
are two drilling pads, where CCE has a very significant working interest.
In the case of the first pad, the working interest is nearly 100%; in the
case of the second drilling pad it is about 55%, with the possibility that
the share could increase to about 80%. If oil prices further increase
during the year, CCE plans to commence further 12 wells from a third pad.

- CCE expects drilling costs per well/hole (1 mile lateral length) to
amount to USD $2.5 to $2.7 million. These costs are considerably lower than
what was expected during company directed operations in 2014. At that time,
the cost for a horizontal well amounted to USD 4.0 to 4.5 million. Further
cost reductions and efficiency improvements over the coming months are
expected.

- CCE performed a 3D seismic survey of an essential part of its license
areas in March. The results were positive, which means none of the proposed
wells are omitted due to fault zones. Henceforth, four drilling pads are
available for CCE from which wells could be drilled immediately. The cost
of the seismic survey amounted to approximately USD 260,000. An equal sized
seismic survey, which Tekton Energy performed back in 2013, had amounted to
about $ 600,000.

- EOG participates in six new horizontal wells. At the end of March, they
commenced from the same well site from which already five wells have been
drilled last summer, which went into production in September and have
consistently provided very good production results.

- From June 2016, EOG expects revenues from so-called mineral rights
(royalties). These royalties belong to Diamond Valley LLC, a 100%
subsidiary of EOG, due to nine wells that have been drilled on its license
area by the holder of the leases. These wells are to be completed in the
coming days and are expected to start production in early June. EOG will
not have to participate in capital expenditure for the wells and also does
not have to share the lease operating costs.

Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: "We are delighted,
that the extensive preparations for the drilling program of Cub Creek are
now almost finished so that we can expect to start drilling within the next
few weeks. The team of Cub Creek has done an excellent job and developed a
portfolio of wells, which we even could commence at short notice depending
on the market situation. Therefore, we are confident of achieving our
targets for 2016 and to accomplish substantial increases in value in the
coming years."

Heidelberg, 14 April 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. [phone]
[e-mail]


14.04.2016 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: [phone]
Fax: [phone]
E-mail: [e-mail]
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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