Deutsche Rohstoff: US subsidiaries prepare additional oil & gas wells New wells to start drilling by end of Q1/Additional acreage acquired

Deutsche Rohstoff AG

Deutsche Rohstoff: US subsidiaries prepare additional oil & gas wells New wells to start drilling by end of Q1/Additional acreage acquired

Deutsche Rohstoff AG

Denver/Heidelberg. The US oil and gas subsidiaries of Deutsche Rohstoff, Cub Creek Energy (CCE) and Elster Oil & Gas (EOG), reported updated reserve figures today. Overall, the combined companies’ reported oil and gas reserves have grown by 84% since December, 2015. Net Proved reserves have grown from 4.25 million BOE to 10.07 million BOE, net probable reserves have grown from 8.04 million BOE to 12.55 million BOE. This reflects a total expected revenue of USD 324 million from proved and USD 410 million from probable reserves. The independent reserve calculation was carried out by Ryder Scott (www.ryderscott.com), one of the most respected reservoir evaluation companies in the US Oil and Gas industry.

Cub Creek Energy Reserve Report: For the net acreage of Cub Creek Energy (CCE) Ryder Scott calculated Proved Reserves of 7.83 million BOE and Probable Reserves of 9.33 million BOE. This is a very significant increase to the reserves published in December 2015, amounting to net Proved Reserves of 2.12 million BOE (Natural gas is converted to oil equivalent using a factor of 5,600 cubic feet of natural gas per one barrel of oil equivalent) and net Probable Reserves of 5.08 million BOE.

Current promulgated reserve values are based on 30 April 2016 NYMEX Strip Pricing CCE. Proved and Probable Reserves result in the following value:

Reserve Category Revenue (USD Million) Future Net Income (FNI) Undiscounted – (USD Million) FNI Discounted at 10% – (USD Million)
Proved 255.49 91.25 34.75
Probable 303.39 109.41 43.22

Table 1.0 – EOG Reserve Value Based on 30 April 2016 NYMEX Strip Pricing

The reserve report includes 120 potential drilling locations of which 48 are already permitted by Cub Creek.

Elster Oil & Gas Reserve Report: For the total net acreage of Elster Oil & Gas (EOG), Ryder Scott calculated Proved Reserves of 2.24 million BOE and Probable Reserves of 3.22 million BOE. Based on 30 April 2016 NYMEX Strip Pricing EOG Proved and Probable Reserves have the following value:

Reserve Category Revenue (USD Million) Future Net Income (FNI) Undiscounted – (USD Million) FNI Discounted at 10% – (USD Million)
Proved 69.15 35.78 19.76
Probable 106.74 45.52 18.91

Table 2.0 – CCE Reserve Value Based on 30 April 2016 NYMEX Strip Pricing

Future Net Income (FNI) is defined as revenues minus partner interest, royalty, development costs, operating costs, and severance tax. The EOG NYMEX reserve report includes producing wells and drilling locations for a total of 62 locations.

The total combined reserve levels being reported by Deutsche Rohstoff through its EOG and CCE subsidiaries are as follows: net Proved Reserves of 10.07 million BOE1 and net Probable Reserves of 12.55 million BOE1. Based on 30 April 2016 NYMEX Strip Pricing these combined reserve values have the following value:

Reserve Category Revenue (USD Million) Future Net Income (FNI) Undiscounted – (USD Million) FNI Discounted at 10% – (USD Million)
Proved 324.64 127.03 54.51
Probable 410.13 154.93 62.13

Table 3.0 – EOG & CCE Combined Reserve Value Based on 30 April 2016 NYMEX Strip Pricing

Robert Gardner, CEO of Cub Creek Energy and Elster Oil & Gas, noted: “The Cub Creek and Elster teams are pleased with the continued value growth achieved despite the challenging commodity price environment the past 12 months. We look forward to realizing the value of these assets as we move into the operational phase of development.”

Heidelberg, 08 June 2016

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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.