Deutsche Rohstoff AG

Earnings Release • Jun 8, 2016

News Details

Corporate | 8 June 2016 10:36

Deutsche Rohstoff AG: Deutsche Rohstoff USA subsidiaries increase oil and gas reserves by 84%

Deutsche Rohstoff AG / Key word(s): Miscellaneous

08.06.2016 10:36

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Deutsche Rohstoff: Deutsche Rohstoff USA subsidiaries increase oil and gas
reserves by 84%

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 BOE1 and net Probable Reserves of 5.08 million
BOE1.

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

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

Table 1.0 - CCE 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 Revenue Future Net Income FNI Discounted at
Category (USD $ Million) (FNI) Undiscounted 10% - (USD $
Proved 69.15 35.78 19.76
Probable 106.74 45.52 18.91

Table 2.0 - EOG 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 Revenue Future Net Income FNI Discounted at
Category (USD $ Million) (FNI) Undiscounted 10% - (USD $
- (USD $ Million) 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. "

1 Natural gas is converted to oil equivalent using a factor of 5,600 cubic
feet of natural gas per one barrel of oil equivalent.

Heidelberg, 8 June 2016

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
Tel. +49 6221 871 000
info@rohstoff.de

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Language: English
Company: Deutsche Rohstoff AG
Friedrich-Ebert-Anlage 24
69117 Heidelberg
Germany
Phone: 06221-87100-11
Fax: 06221-87100-22
E-mail: gutschlag@rohstoff.de
Internet: www.rohstoff.de
ISIN: DE000A0XYG76, DE000A1R07G4,
WKN: A0XYG7, A1R07G
Indices: Entry Standard (Performance TOP 30)
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart;
Open Market (Entry Standard) in Frankfurt

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