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DGAP-News Deutsche Rohstoff boosts activities in the US Oil and Gas industry

Nachrichtenquelle: EQS Group AG
15.06.2015, 08:46  |  700   |   |   

DGAP-News: Deutsche Rohstoff AG / Key word(s): Miscellaneous
Deutsche Rohstoff boosts activities in the US Oil and Gas industry

15.06.2015 / 08:46


Deutsche Rohstoff boosts activities in the US Oil and Gas industry
New company with former Tekton Energy Team/Strong Performance of existing
Cub Creek und Elster Oil & Gas

Heidelberg/Denver. Deutsche Rohstoff will further intensify its activities
in the US oil and gas market. Jerry Sommer and Earl Norris, founders of
Tekton Energy, are part of a management team that has established a new oil
and gas company called Salt Creek Oil & Gas, LLC, based in Denver,
Colorado. Deutsche Rohstoff will own the majority of the company's shares.
Salt Creek Oil & Gas will focus on opportunities in the US oil and gas
market, especially those arising from the recent downturn in the market
caused by lower oil prices and the improving fundamentals of US natural
gas. Salt Creek will initially focus outside the Wattenberg field in

Tim Sulser will serve as CEO of Salt Creek Oil & Gas. Tim is a very
experienced petroleum engineer who has been working in the US oil and gas
industry over the last 15 years. He joins Salt Creek after having managed
oil and gas transactions for the specialized energy investment bank Tudor
Pickering & Holt Co. for the last 5 years, including advising on the
successful and timely sale of Tekton Energy, which resulted in cash
proceeds of USD 200 million.

Jerry Sommer, Chairman of Salt Creek Oil & Gas, said: "We are very excited
to commence a new venture with the two founding members that started Tekton
in 2011. Tim's skills and experience ideally complements the team."

Tim Sulser, CEO of Salt Creek Oil & Gas, commented: "I am looking forward
to working with the team to build a successful oil and gas company. There
will be numerous opportunities to create significant value over the next
years. Now is the right time to invest in the US oil and gas market."

During the past twelve months Deutsche Rohstoff's currently existing oil
and gas subsidiaries have developed excellently. Only one year after
foundation of Cub Creek Energy, LLC by the operational members of the
Tekton Energy team the company has secured approximately 2,200 highly
prospective acres in the core area of oil development in the Wattenberg
field in Colorado. Elster Oil & Gas, LLC (formerly known as Tekton Energy,
LLC) is participating in the Magpie project, located in the same area. A
recently developed schedule for horizontal drilling has resulted in the
potential to drill up to 150 gross wells with both companies combined. The
Cub Creek Energy management team is expecting the wells to return similar
performance to the wells drilled by Elster Oil & Gas in 2013 and 2014.

Elster Oil & Gas is participating in an initial five well drilling program
currently underway in the Magpie project acreage that are expected to
commence production in the third quarter of 2015. Beginning in the fourth
quarter of 2015 additional wells will be drilled by Cub Creek Energy as
well as Elster Oil & Gas. Oil price will be the major influence on the
number of wells and the timing of development activities. According to
several operators in the basin as well as the Cub Creek Energy management
team the break-even of most well can be achieved at USD 40 (WTI) per

Thomas Gutschlag, CEO of Deutsche Rohstoff, added: "We are more than
satisfied with the first 12 month of the existing companies. President &
CEO Robert A. Gardner (former VP Engineering & Operations of Tekton Energy)
and his team have done a great job. Within a short timeframe they have
acquired a highly valuable portfolio of assets and laid the groundwork for
future growth. I am convinced that Salt Creek will have similar success. We
are proud to have two such experienced and strong teams working in the US
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