Deutsche Rohstoff: Cub Creek and Elster increase value of oil and gas reserves by 120%

Deutsche Rohstoff AG

Deutsche Rohstoff: Cub Creek and Elster increase value of oil and gas reserves by 120%

Deutsche Rohstoff AG

PV 10 of USD 162 million for proved reserves/USD 94 million for probable reserves

Mannheim/Denver. Cub Creek Energy (CCE) and Elster Oil & Gas (EOG) today announced that they more than doubled the value of the companies’ combined proved and probable oil & gas reserves from the last update of May, 2016. The reserves reflect a proved future net income discounted at 10% (PV10) of USD 162 million combined for both CCE and EOG. Additionally, a respective probable PV10 of USD 94.1 million was also realized for both companies combined. Reserve values are based on 12/31/2016 NYMEX Strip Pricing and were calculated by Ryder Scott (www.ryderscott.com), one of the most respected reservoir evaluation companies in the US Oil and Gas industry.

The strong increase especially in the value of total proven reserves mainly resulted from an increase in oil and natural gas prices, a 20% increase in total proven reserves and higher concentration of working interest realized by Cub Creek in numerous wells. Furthermore, Cub Creek added additional drilling locations in August, 2016.

Cub Creek Energy Reserves: For the net acreage of Cub Creek Energy (CCE) Ryder Scott calculated Proved Reserves of 10.16 million BOE and Probable Reserves of 8.43 million BOE.

Current promulgated reserve values are based on 12/31/2016 NYMEX Strip Pricing for CCE. Proved and Probable Reserves result in the following value:

Reserve Category Revenue(USD million) FNI** Undiscounted(USD million) FNI** Discounted at 10%(USD million)
Proved Developed 126.247 105.192 85.936
Proved Undeveloped 266.958 112.325 53.810
Probable 321.760 134.234 63.633

Elster Oil & Gas Reserves: For the total net acreage of Elster Oil & Gas (EOG), Ryder Scott calculated Proved Reserves of 1.95 million BOE and Probable Reserves of 3.32 million BOE. Based on 12/31/2016 NYMEX Strip Pricing EOG Proved and Probable Reserves have the following value:

Reserve Category Revenue(USD million) FNI** Undiscounted(USD million) FNI** Discounted at 10%(USD million)
Proved Developed 16.973 11.316 8.533
Proved Undeveloped 52.704 25.667 13.754
Probable 125.953 58.483 30.446

The total combined reserve levels being reported by Deutsche Rohstoff through its EOG and CCE subsidiaries are as follows: net Proved Reserves of 12.11 million BOE and net Probable Reserves of 11.75 million BOE. Based on 12/31/2016 NYMEX Strip Pricing these combined reserve values have the following value:

Reserve Category Revenue(USD million) FNI** Undiscounted(USD million) FNI Discounted at 10%(USD million)
Proved Developed 143.220 116.508 94.469
Proved Undeveloped 319.662 137.992 67.564
Probable 447.713 192.717 94.079

Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “The team of Cub Creek and Elster have successfully built a high reserve value in less than three years. We are positioned to systematically develop these reserves in the coming months. Based on this success we want to expand and further grow our US Oil & Gas business.”

*Natural gas is converted to oil equivalent using a factor of 5,600 cubic feet of natural gas per one barrel of oil equivalent.
**Future Net Income (FNI) is defined as revenues minus partner interest, royalty, development costs, operating costs, and severance tax.

Mannheim, 16 February 2017


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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.

 

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