Deutsche Rohstoff AG: Oil- and Gas Reserves of US subsidiaries increased

Deutsche Rohstoff AG

Deutsche Rohstoff AG: Oil- and Gas Reserves of US subsidiaries increased

Deutsche Rohstoff AG

Mannheim/Denver. The proved reserves of the US subsidiaries of Deutsche Rohstoff AG rose to 29.4 million barrels of oil equivalent (BOE) as of 31 December 2018 (previous year: 17.5 million BOE), while the probable reserves declined to 3.4 million BOE (previous year: 7 million BOE). The present value of the reserves (future cash flow discounted at 10%, so-called PV 10) amounted to USD 177 million as of 31 December 2018 (previous year: USD 169 million) for the proved reserves and USD 9 million (previous year: USD 28 million) for the probable reserves.

The value of the reserves has risen less sharply than the volume of reserves. The value calculation is based on the average oil price of the NYMEX forward curve over the next 10 years. On 31 December 2018 it was only 51.44 USD/barrel. On the basis of the forward curve of 26 February 2019, however, the total value of the reserves is around USD 204 million.

The figures as of December 31, 2018 also include the reserves of the subsidiaries Salt Creek Oil & Gas and Bright Rock Energy, which was founded in mid-2018. These two subsidiaries together have proved reserves of 2.3 million BOE and probable reserves of 3.4 million BOE. The PV10 of the proved reserves amounted to USD 8 million and the value of the probable reserves to USD 8.9 million.

Both companies continue to grow in 2019. Last week, Salt Creek announced the purchase of royalties for USD 5.4 million. The reserves acquired through this purchase are not part of the reserve calculation as at 31 December 2018.

Proven Reserves BO
(million)
BOE*
(million.)
Revenues
(million USD)
FNI** Undiscounted
(million USD)
FNI** Discounted
10%-(million USD)
CCE 10.58 23.77 867.93 275.28 125.19
EOG 1.37 3.37 119.49 64.67 44.23
SCOG &
Bright Rock Energy
1.88 2.27 91.89 29.00 7.99
Total 13.83 29.42 1,079.31 368.95 177.40
Probable Reserves BO
(million)
BOE*
(million.)
Revenues
(million USD)
FNI** Undiscounted
(million USD)
FNI** Discounted
10%-(million USD)
SCOG &
Bright Rock Energy
2.69 3.41 138.50 51.47 8.87
Total 2.69 3.41 138.50 51.47 8.87

*Natural gas is converted to oil equivalent using a factor of 6,000 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, 28 February 2019

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.