Deutsche Rohstoff AG

Regulatory Filings • Dec 14, 2015

News Details

Corporate | 14 December 2015 09:44

Deutsche Rohstoff AG: Cub Creek and Elster publish reserve calculation

Deutsche Rohstoff AG / Key word(s): Miscellaneous

14.12.2015 09:44

Dissemination of a Corporate News, transmitted by DGAP - a service of EQS
Group AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Deutsche Rohstoff: Cub Creek and Elster publish reserve calculation
Totalling 4.25 million BOE net proved reserves and 8.03 million BOE net
probable reserves/Horizontal wells continue strong production

Denver/Heidelberg. Elster Oil & Gas, a 93% subsidiary of Deutsche Rohstoff,
reported today that the five horizontal wells that started flowback in
Mid-September continue to show strong production. The average production
rate from this group of five wells over the past 75 days has been 561
Barrels of Oil Equivalent per Day (BOEPD1). Furthermore an independent
reserve calculation, carried out by Ryder Scott (www.ryderscott.com), one
of the most respected reservoir evaluation companies in the US Oil and Gas
industry, was published today.

Elster Oil & Gas Reserve Report: The report states an average gross reserve
of 386,880 Barrels of Oil Equivalent (BOE1) for each of the 5 wind wells
that are currently producing. For the total net acreage of Elster Oil & Gas
(EOG), Ryder Scott calculated Proved Reserves of 2.13 million BOE and
Probable Reserves of 2.96 million BOE. Based on 31 October 2015 NYMEX Strip
Pricing EOG Proved and Probable Reserves have the following value:

Reserve Revenue Future Net Income (FNI) FNI Discounted at 10%
Category (USD $ Undiscounted - (USD $ Million) - (USD $ Million)
Million)
Proved $ 84,73 $ 42,21 $ 2176
Probable $ 122,63 $ 53,74 $ 22,64

Table 1.0 - EOG Reserve Value Based on 31 October 2015 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 wells and drilling locations for a total of
62 locations.

Cub Creek Energy Reserve Report: For the net acreage of Cub Creek Energy
(CCE) Ryder Scott calculated net Proved Reserves of 2.12 million BOE1 and
net Probable Reserves of 5.08 million BOE1. Based on October 31st, 2015
NYMEX Strip Pricing CCE Proved and Probable Reserves have the following
value:

Reserve Revenue Future Net Income (FNI) FNI Discounted at 10%
Category (USD $ Undiscounted - (USD $ Million) - (USD $ Million)
Million)
Proved $ 85,10 $ 30,12 $ 11,35
Probable $ 202,06 $ 80,01 $ 33,63

Table 2.0 - CCE Reserve Value Based on 31 October 2015 NYMEX Strip Pricing

The reserve report includes 49 potential drilling locations that are
already permitted by Cub Creek. Management is planning and additional 100
drilling locations on the CCE properties.

The total combined reserve levels being reported by Deutsche Rohstoff
through its EOG and CCE subsidiaries are as follows are net Proved Reserves
of 4.25 million BOE1 and net Probable Reserves of 8.03 million BOE1. Based
on October 31st, 2015 NYMEX Strip Pricing these combined reserve values
have the following value:

Reserve Revenue Future Net Income (FNI) FNI Discounted at 10%
Category (USD $ Undiscounted - (USD $ Million) - (USD $ Million)
Million)
Proved $ 169,83 $ 72,33 $ 33,11
Probable $ 324,69 $ 133,75 $ 56,27

Table 3.0 - EOG & CCE Combined Reserve Value Based on 31 October 2015 NYMEX
Strip Pricing

Robert Gardner, CEO of Cub Creek Energy and Elster Oil & Gas, noted: "These
first reserve reports are an important milestone in the growth strategy of
both Elster Oil and Gas and Cub Creek Energy. Even in a low oil price
environment we are able to generate positive cash flows from profitable
wells."

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, 14 December 2015

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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