Oil production above expectations/Strong results of securities portfolio
Mannheim. At the end of the first half of the year, Deutsche Rohstoff AG provides an update on the development of its business:
- Oil and gas production in the USA continued to develop very positively. A total of about 1,210,000 BOE (570,000 BO) were produced until the end of May. This means that production to date was around 16% percent above plan.
- Drilling from the Knight well pad was completed on schedule at the end of May. It is anticipated that well completion will start in mid-July. Production is still expected to commence in the fourth quarter of 2021. Cub Creek drilled 12 wells with 2.25 miles of horizontal length. Cub Creek’s working interest in the wells is 86%. Total capital expenditures are estimated to be USD 60 million.
- Cub Creek has entered into hedging contracts for both existing production and anticipated Knight production. For the remainder of 2021, around 380,000 barrels are hedged at around USD 50, and for 2022 to date, 390,000 barrels are hedged at around USD 58 per barrel.
- The securities portfolio consisting of oil and gas and gold stocks continues to deliver very good results. In the 2nd quarter, gains of EUR 3.0 million have been realized so far. In addition, there are unrealized gains in the amount of EUR 6.4 million. In the 1st quarter, profits in the amount of EUR 8.5 million were realized.
The company is planning to publish its preliminary half-year figures by mid-July and the full half-year report by mid-August.
Mannheim, 23 June 2021
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 and tungsten complete the portfolio. Further information can be found at www.rohstoff.de