USD 57.1 million sales price/Closing expected early March
Mannheim/Denver. Salt Creek Oil & Gas has signed a purchase and sales agreement for the majority of its properties in North Dakota. The purchase price amounts to USD 57.1 million. Completion of the transaction is scheduled for early March and is subject to the usual reservations regarding the buyer’s review. The buyer paid 10% of the purchase price as a non-refundable deposit. Deutsche Rohstoff holds a 90% stake in Salt Creek.
Salt Creek acquired the asset package in the Williston Basin in North Dakota in December 2016. The acreage consisted of non-operated acreage with existing production as well as a significant development potential for a large number of expected new wells. The purchase price in December 2016 was USD 38 million. In the meantime, Salt Creek has invested around USD 9 million so that the pre-tax profit from the sale will amount to approximately USD 10 million for Salt Creek in 2018. Furthermore, the company has generated a profit of around USD 3 million in 2017. The present value of the assets that are not sold in this transaction amounts to approximately USD 1 million.
Thomas Gutschlag, CEO of Deutsche Rohstoff AG, comments: „We are pleased with the successful sale of the project in North Dakota after just 13 months. With the sale, we have achieved a high return on our invested capital, we’ll reduce the debt in the Group and continue to have a very strong cash position for further investment. Tim Sulser and his very small team have done a great job and we are excited to find further investment opportunities in the future.”
Mannheim, 7 February 2018
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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