In 2011, Deutsche Rohstoff AG, together with Americans Jerry Sommer and Earl Norris, established Tekton Energy LLC with the aim to participate in the positive development in the US oil & gas market.
The company’s initial focus was the development of onshore areas in the USA by drilling vertical wells. At the end of 2011, following comprehensive research and evaluation, it was possible to acquire the Windsor Project, which was located on the edge of the then well-known Wattenberg oilfield in Colorado.
By the end of May 2012 nine successful vertical wells were drilled, which achieved full production by the end of August. Production from vertical wells was the predominant method of oil extraction in the Wattenberg field until then.
At the same time larger companies such as Anadarko and Noble Energy successfully drilled horizontal wells in the Wattenberg Field. An average horizontal well did cost approximately USD 4.0 Mio. and yielded around 350,000 barrel of oil equivalent. Based on these encouraging results Tekton Energy initiated engineering activities to also implement this now technology on their holdings. The first two wells "Rancho Valley 11 and 13" started production in May 2013 and yielded outstanding results.
The results prompted Tekton Energy to initiate a comprehensive drill programme totaling 80 wells. To finance this work program a corporate bond valued at EUR 62.5m was issued by Deutsche Rohstoff AG in June 2013.
Between September 2013 and early 2014 almost 20 further wells could be successfully brought into production. At this time Deutsche Rohstoff AG held a 74% stake in Tekton Energy with the remaining shares being held by the management.
In spring of 2014 Deutsche Rohstoff received a purchase offer for Tekton Energy which amounted to USD 200m. Following a comprehensive review of this offer the decision was made to sell.
At the time of the sale, Deutsche Rohstoff had invested USD 29m of equity capital and USD 39m of borrowed capital in Tekton Energy. The 74% share in the sales price therefore generated a significant profit. This was Deutsche Rohstoff's greatest success to-date.