Significant increase in production and sales expected in 2020
Mannheim. Cub Creek Energy, one of four subsidiaries of Deutsche Rohstoff AG in the US, will start the production of oil and gas from a total of 11 new wells drilled from the Olander pad with a horizontal length of two miles each. The drilling phase lasted from mid-June to the end of September, since then the wells have been completed. Cub Creek is investing approximately USD 50 million in the development of the field. Cub Creek is expected to release initial production results during February.
Due to the new production, Deutsche Rohstoff expects a significant increase in sales and EBITDA in 2020. The forecast published in May 2019 assumes that Group sales will increase to EUR 75 to 85 million and EBITDA to EUR 55 to 65 million in 2020. Compared to 2019, this represents approximately a doubling.
Cub Creek is currently preparing another well pad (“Knight”), located immediately west of the Olander pad. It could be drilled and completed during 2020. Knight is expected to comprise at least as many wells as Olander, with the wells being two and one-quarter miles long horizontally. The final decision on drilling will be made by Cub Creek in spring. Among other things, it will depend on oil price trends and the production of the Olander wells.
Mannheim, 31 December 2019
Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold, copper, rare earths, tungsten and tin complete the portfolio. Further information can be found at www.rohstoff.de