Mannheim/Denver. Elster Oil & Gas, a 93% subsidiary of Deutsche Rohstoff, will participate in additional horizontal wells in the so-called Magpie area. The operator of the area gave notice that 20 wells will be drilled from two pads. Drilling activity has already commenced. All wells will be extended reach laterals, 14 wells with a lateral length of 2 miles and 6 wells with a lateral length of 2.5 miles.
Elster´s working interest will amount to approximately 24%, the total investment is estimated at approximately USD 25 million. The overall program equates to a 43 well 1 mile program. Production from all wells will likely start in the first quarter of 2018. The operator expects higher returns from the extended laterals compared to standard one-mile wells. The program will be financed by Deutsche Rohstoff.
For more information please visit www.rohstoff.de.
Mannheim, 21 July 2017