EQS-News Deutsche Rohstoff AG: Significant increase in proved oil and gas reserves

Deutsche Rohstoff AG: Significant increase in proved oil and gas reserves
Proved reserves jump 22% to 36 million BOE/NPV10 of proved reserves of USD 352 million

Mannheim. Deutsche Rohstoff AG today published the value of oil and gas reserves in its US subsidiaries as of 31 December 2022:
 

• Present value of proved reserves of USD 352 million
• Future net cash flow of proved reserves USD 650 million
• Proved Developed Producing (PDP) net present value of USD 246 million
• Future cash flow from PDP wells USD 351 million
• 35.7 million barrels of oil equivalent (BOE) of proved reserves

Proved reserves amount to USD 352 million (previous year: USD 318 million), with proved and probable reserves adding up to USD 372 million (previous year: USD 368 million). Proved reserves amount to 35.7 million barrels of oil equivalent (BOE) at year-end (previous year: 29.2 million BOE), while probable reserves amount to 13.7 million BOE (previous year: 19.4 million BOE).

Future Net Cash Flow is calculated on the basis of revenue based on oil and gas reserves (BOE) at NYMEX WTI futures pricing as of 31 December, less production taxes, capital expenditures (CAPEX) and current costs (OPEX). To determine the present value, the net cash flow is discounted with 10% (PV10). The 5-year average NYMEX WTI price to calculate the reserves was USD 72/barrel.

PDP reserves increased slightly to 14.8 million BOE (previous year: 14.4 million BOE). The discounted value of PDP wells as of 31 December 2022 is USD 246 million (prior year: USD 251 million). Despite the projected record production of approximately 3.5 million BOE in 2022 and forecasted net operating cash flow at the project level of over USD 140 million, the reserves produced could be replaced.

The replacement of produced reserves was achieved primarily through the start-up of numerous wells in Utah, a Salt Creek pad in Wyoming and due to higher-than-expected reserves for existing wells.