Deutsche Rohstoff AG

Regulatory Filings • Jun 6, 2016

News Details

Corporate | 6 June 2016 07:45

Deutsche Rohstoff AG: Cub Creek Energy commences drilling

Deutsche Rohstoff AG / Key word(s): Miscellaneous

06.06.2016 07:45

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 Energy commences drilling
19 horizontal wells to be drilled with two rigs/Completion of 6 new Elster
wells in June

Heidelberg/Denver. Cub Creek Energy (CCE) will commence drilling of 19
horizontal wells in the core area of the Wattenberg field in Colorado over
the next few days. The wells will be drilled from two pads. The first pad
("Vail pad") will allow for 9 wells. CCE has a working interest of nearly
100% in these wells. 10 wells will be drilled from the second pad ("Markham
pad"). Working interest for CCE is expected to average 75% in these wells.
CCE and Deutsche Rohstoff have decided to adjust the previously planned
drilling strategy and now drill the wells with two drilling rigs nearly
simultaneously. Drilling at the Vail Pad is anticpated to begin the week of
June 5th. The planned spud date for the Markham pad is predicted for the
week of June 27th. Drilling is expected to be ongoing until mid-August,
2016 with completion of the wells expected in September, 2016. Production
will begin in September or October of 2016. The total investment of Cub
Creek will amount to approximately USD 45 million.

Both pads are situated in an area the CCE has detailed technical experience
in as they reside only a few miles south of the former Tekton Energy
Windsor project as well as Elster's Magpie project. Elster Oil & Gas (EOG),
93% owned by Deutsche Rohstoff, is currently participating in the drilling
of six new wells which will be finished over the next few days. Production
from these 6 new wells is anticipated to being started sometime in the
third quarter of 2016.

Bob Gardner, CEO and President of Cub Creek Energy, commented: "We are
excited to get started now after 15 months of intense assembly of drilling
projects. Drilling with two rigs secures very favorable terms with service
companies and will result in a much higher cash flow as early as in the
fourth quarter of 2016 compared to drilling with one rig. Higher oil prices
support this decision."

The drilling program will partly be financed with equity, partly with debt
provided from Deutsche Rohstoff. Management of CCE will participate in the
equity financing with an overall amount in excess of USD$ 650,000. Deutsche
Rohstoff's share in the company will rise to roughly 79% after the capital
increase.

Heidelberg, 6 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

06.06.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap.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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