Extensive undeveloped acreage position inside giant US oil and gas field
Denver/Heidelberg. Deutsche Rohstoff AG´s majority owned, USA affiliate, Tekton Energy LLC has secured a block of approximately 2.000 acres undeveloped land within the boundaries of one of the largest oil and gas field in the United States. Tekton plans to start developing this acreage right away. A drilling campaign will be prepared during forthcoming months, including permitting. The first wells could be drilled as early as first quarter 2012. Due to the fact that Tekton´s acreage is located adjacent to several producing wells, the chance of sucessful drilling is very high. It is expected that wells from Tekton´s acreage will mainly produce oil.
The Wattenberg Field, north of the Denver Metropolitan area was discovered in the early 1970’s and has experienced several waves of development and expansion and now numbers over 20.000 wells. Recent technical advances have pushed the robust economic edge of the field to include Tekton’s acreage position. Colorado oil and gas commission reports that in 2010 the field produced 17 million barrels of oil and 197 bcf of natural gas. In recent years the industry drilled between 1.500 and 2.000 new wells per year.
The property has noteworthy potential for over 100 vertical development wells from Cretaceous age formations, which are the primary producing zones in Wattenberg. In addition, numerous horizontal wells in the rapidly developing, Niobrara shale oil trend and a very large number of second and third fracture stimulations are possible. Multiple fracture stimulations have been pioneered in Wattenberg with solid economic results. Tekton is aiming at drilling approximately 10 wells over the next 12 months in order to prove the economics of the field. Drilling costs are significantly lower in the US than in Germany due to huge number of wells drilled and fierce competition between drilling companies.
In the US, there is no state-regulated licence system for exploration and production of oil and gas. Instead, the landowner sells a mineral lease to interested parties. Tekton Energy has to pay an initial leasing bonus for the lease. Additional amounts will presumably be due in the next 3 to 4 months for the second half of the acreage. This second part of the deal has not been closed yet.
Tekton’s Chief Executive Officer, Mr. Jerry Sommer, commented, “The Wattenberg acquisition epitomizes Tekton’s focus on creating value advantage through deep technical understanding, successful application of new technologies and applying those to opportunities where benefits can be multiplied over a large number of wells. We’re thrilled to partner with important land, mineral and community leaders to responsibly develop this substantial asset.”
Deutsche Rohstoff’s Chief Executive Officer, Dr. Titus Gebel concluded, “We’re encouraged that Tekton was able to identify, evaluate and secure this excellent project. It offers a very good potential to start building a multi-hundred million Dollar company, which is our common medium term goal.”
Heidelberg, 12 October 2011
Deutsche Rohstoff AG (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 gold, oil & gas and so called high tech metals such as tin, tungsten, and rare earth metals. All projects are located in countries marked by political stability, the core area being Germany. The business concept is based on redeveloping deposits which have been well explored in the past. A first production started in Georgetown/Australia in January 2011. For more information please visit www.rohstoff.de.
Dr. Thomas Gutschlag
Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24, 69117 Heidelberg
Tel. (06221) 87 100-0
Fax (06221) 87 100-22
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