New company with former Tekton Energy Team/Strong Performance of existing Cub Creek und Elster Oil & Gas
Heidelberg/Denver. Deutsche Rohstoff will further intensify its activities in the US oil and gas market. Jerry Sommer and Earl Norris, founders of Tekton Energy, are part of a management team that has established a new oil and gas company called Salt Creek Oil & Gas, LLC, based in Denver, Colorado. Deutsche Rohstoff will own the majority of the company’s shares. Salt Creek Oil & Gas will focus on opportunities in the US oil and gas market, especially those arising from the recent downturn in the market caused by lower oil prices and the improving fundamentals of US natural gas. Salt Creek will initially focus outside the Wattenberg field in Colorado.
Tim Sulser will serve as CEO of Salt Creek Oil & Gas. Tim is a very experienced petroleum engineer who has been working in the US oil and gas industry over the last 15 years. He joins Salt Creek after having managed oil and gas transactions for the specialized energy investment bank Tudor Pickering & Holt Co. for the last 5 years, including advising on the successful and timely sale of Tekton Energy, which resulted in cash proceeds of USD 200 million.
Jerry Sommer, Chairman of Salt Creek Oil & Gas, said: “We are very excited to commence a new venture with the two founding members that started Tekton in 2011. Tim’s skills and experience ideally complements the team.”
Tim Sulser, CEO of Salt Creek Oil & Gas, commented: ”I am looking forward to working with the team to build a successful oil and gas company. There will be numerous opportunities to create significant value over the next years. Now is the right time to invest in the US oil and gas market.”
During the past twelve months Deutsche Rohstoff’s currently existing oil and gas subsidiaries have developed excellently. Only one year after foundation of Cub Creek Energy, LLC by the operational members of the Tekton Energy team the company has secured approximately 2,200 highly prospective acres in the core area of oil development in the Wattenberg field in Colorado. Elster Oil & Gas, LLC (formerly known as Tekton Energy, LLC) is participating in the Magpie project, located in the same area. A recently developed schedule for horizontal drilling has resulted in the potential to drill up to 150 gross wells with both companies combined. The Cub Creek Energy management team is expecting the wells to return similar performance to the wells drilled by Elster Oil & Gas in 2013 and 2014.
Elster Oil & Gas is participating in an initial five well drilling program currently underway in the Magpie project acreage that are expected to commence production in the third quarter of 2015. Beginning in the fourth quarter of 2015 additional wells will be drilled by Cub Creek Energy as well as Elster Oil & Gas. Oil price will be the major influence on the number of wells and the timing of development activities. According to several operators in the basin as well as the Cub Creek Energy management team the break-even of most well can be achieved at USD 40 (WTI) per Barrel.
Thomas Gutschlag, CEO of Deutsche Rohstoff, added: “We are more than satisfied with the first 12 month of the existing companies. President & CEO Robert A. Gardner (former VP Engineering & Operations of Tekton Energy) and his team have done a great job. Within a short timeframe they have acquired a highly valuable portfolio of assets and laid the groundwork for future growth. I am convinced that Salt Creek will have similar success. We are proud to have two such experienced and strong teams working in the US market.”
Heidelberg, 15 June 2015
Deutsche Rohstoff (Heidelberg, Germany), listed in the Entry Standard segment of Frankfurt Stock Exchange, is establishing a new primary producer. The company’s focus is placed on oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in political stable countries with high environmental standards. The business concept is based on redeveloping deposits, which have been well explored in the past. For more information please visit www.rohstoff.de.
Deutsche Rohstoff AG
Tel. +49 6221 871 000