Deutsche Rohstoff AG: Salt Creek with strong first quarter results
Higher than anticipated drilling activityMannheim/Denver. Salt Creek Oil & Gas, 90% subsidiary of Deutsche Rohstoff, reported revenues of USD 2.0 million and an EBITDA of USD 1.4 million from its producing wells in North Dakota in the first quarter of 2017. Production figures were more than 20% above the company's acquisition forecast and amounted to approx. 700 barrel of oil equivalent per day (boepd). For the full year 2017, Salt Creek therefore expects a higher revenue and EBITDA than originally anticipated. The estimate from December called for a full-year revenue of USD 6.5 million and an EBITDA of USD 4.8 million for 2017.
Salt Creek also received well proposals from different operators. So far, the projections of wells budgeted have been exceeded. Until the end of the first quarter, nine well proposals were received. Salt Creek will take part in all nine wells which represents a total investment of approximately USD 5.0 million. The gross investment amount by all operators is approx. USD 60 million. Salt Creek's average working interest in the wells amounts to 8.5%. Three of the nine wells are currently being drilled, the other six wells will likely spud subsequently over the coming months. From the third quarter on, Salt Creek will realize additional revenue. Over the coming months, Salt Creek expects to receive further well proposals.
Mannheim, 27 April 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.
Contact:
Deutsche Rohstoff AG
Thomas Gutschlag, CEO
Tel. +49 621 490 817 0
info@rohstoff.de