Permitting will commence immediately
Heidelberg/Denver. Cub Creek Energy (CCE) signed an agreement with a privately held local oil & gas company in Colorado that will allow the company to develop a significant acreage position over the coming years. Subject to final evaluation of leasehold ownership Cub Creek is expecting to be able to develop an additional 1,500 net acres in the Western part of the Denver Julesberg Basin oil field in Colorado. Cub Creek has again managed to enter into a deal structure that does not include any upfront payment to the current owner of the leased acreage, instead a royalty will be paid to the owner upon production start of the oil & gas wells.
Depending on the determination of drilling locations and the optimal outline of future wells based on geological and economic considerations the company is expecting to be able to drill up to an additional 50 two mile oil & gas wells. The company will immediately start undertaking regulatory and technical efforts to develop the new acreage. The asset is relatively concentrated and regional strategic when referencing the existing projects of Cub Creek and Elster Oil & Gas, the two US subsidiaries of Deutsche Rohstoff.
Bob Gardner, CEO and President of Cub Creek Energy, commented: “We are pleased that we were able to secure more development acreage in Wattenberg. Our drilling inventory will significantly increase over the coming months. Another big step forward for our continuously developing company.”
Heidelberg, 10 August 2016
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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