75% of current production hedged until end of 2017
Mannheim/Denver. The three oil and gas producing subsidiaries of Deutsche Rohstoff in the US (Cub Creek, Elster and Salt Creek) have on average currently hedged approximately 75% of their production until the end of 2017.
In most cases so-called “costless collars” were put in place. Costless collars are derivatives that define a floor and a ceiling. The floor currently sits slightly above USD 47 per barrel whereas the ceiling is fixed just over USD 58 per barrel. The floor ensures that a minimum of USD 47 per barrel is received even if prices drop below this level. The ceiling means that any price increases above USD 58 per barrel is capped. The ceiling can be removed by paying its value in case a strong price increase is expected. To a significantly lesser extent the expected production for 2018 is already hedged.
Mannheim, 21 March 2017
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.
Deutsche Rohstoff AG
Thomas Gutschlag, CEO
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