EQS-Adhoc

Deutsche Rohstoff AG: Increased guidance for 2024 - Seite 2

The previous planning assumed that in 2024, in addition to 10 wells in the joint venture with Occidental, 2 to 3 wells would be drilled at 1876 Resources and 3 wells at Bright Rock Energy. Due to the high prices, it has now been decided to expand the drilling program at 1876 to 8 to 10 new wells with an average working interest of ca. 70%. The wells are to be drilled from three different pads.

The first two wells drilled last year by 1876 Resources were already able to start production in January, while the 10 wells drilled by Salt Creek as part of the joint venture with Occidental have started production in recent days. The three Bright Rock wells started in December 2023 are expected to be completed earlier than expected starting late April.

Overall, the Group's production in the first quarter was well above expectations. The wells that have been producing since the end of 2023 were able to maintain their high production levels. Overall, production in the first quarter was 14% higher than planned. This development and the successful completion of the first well are an important confirmation that the relocation of operating activities to Wyoming implemented in the previous year continues to deliver very good results.

Deutsche Rohstoff now expects production of 14,700 to 15,700 barrels of oil equivalent per day (BOEPD) for the year as a whole. This means that production will once again be around 20% higher than the previous year's figure of around 12,700 BOEPD.

The investment volume will amount to around EUR 145 to 165 million (previously around EUR 110 million). The majority of this will be invested in new wells.

Jan-Philipp Weitz, CEO, said: “Our forecast for 2024 published today once again marks a milestone in our strong development in recent years. For the first time, we expect sales well above EUR 200 million. We have increased our production by around 60% since 2022. This rapid growth is the result of high investments in 2022 and 2023, which were necessary to broaden our operational base, successfully master the transition of our activities to Wyoming and demonstrate that we can operate highly profitably on a sustainable basis.”