Deutsche Rohstoff AG
Deutsche Rohstoff AG: Corporate update
DGAP-News: Deutsche Rohstoff AG
/ Key word(s): Miscellaneous
Deutsche Rohstoff AG: Corporate update Mannheim. At the beginning of the year, Deutsche Rohstoff AG provides an overview of developments in the Group, its subsidiaries and individual shareholdings. The US oil price WTI, which recently rose to over USD 50, represents an important component for the expansion and resumption of production and significantly increases the ability to plan further development of the US subsidiaries. Overall, Deutsche Rohstoff AG plans a net production of 5,700 to 6,300 barrels of oil equivalent per day (BOEPD) and 2,300 to 2,600 barrels of oil per day (BOPD) respectively from the existing wells in the course of 2021. Wells under development and planned wells are not part of this forecast. For 2021 hedging contracts for around 45% of the expected production have been executed. The hedged price is around USD 45/barrel. Further hedging contracts are being added on an ongoing basis. Cub Creek Energy resumed oil and gas production from the Olander pad as planned at the beginning of the year. It had been completely shut in during the price decline last year. For the current year, management is planning average gross daily production of around 2,200 barrels of oil from the Olander well pad, which could be adjusted up or down depending on the oil price level. The older Vail, Markham, Haley and Litzenberger well pads have already been producing around 1,000 BOPD (gross) since the beginning of October and are in line with expectations. It is anticipated that Cub Creek will drill new wells from the Knight pad beginning in February. Up to 12 wells with 2.25 miles of horizontal length are possible. Whether all 12 wells will be drilled depends largely on further oil price developments. Production for the new wells is expected to start in the 4th quarter of 2021. Bright Rock Energy is currently producing approximately 400 BOEPD from its existing wells in Utah and newly acquired wells in Wyoming. The newly acquired wells in Wyoming account for about half of this total. In June 2020, Bright Rock completed the acquisition of approximately 30,000 acres of acreage in the Powder River Basin in Wyoming. Due to the price increase, the economics of the acquisition are already exceeding expectation as of the time of acquisition. Bright Rock is currently planning a drilling program and numerous additional drilling permits for further development of the acreage. The drilling program is expected to commence with at least one well in 2021. In total, the acquired areas offer potential for up to 100 wells, the economic potential of which is to be confirmed by the first drilling program. Other Powder River Basin operators such as EOG Resources and Devon Energy recently announced numerous wells with initial production well above 1,000 BOEPD and expect to reduce drilling costs by approximately 20% compared to 2019. Almonty Industries The Almonty share gained around 52 percent last year. Deutsche Rohstoff AG sees considerable further potential, as Sangdong not only represents the most promising tungsten mine in the world, but also has a molybdenum deposit with high grades. Both metals are considered critical for many new industrial applications, but are currently supplied mainly from China. Prices for almost all industrial metals, including tungsten, have increased in recent months. Gold portfolio and oil and gas portfolio From the portfolio built up from March onwards, in 2020 profits of EUR 3.5 million have already been realized. Currently, there are unrealized profits in the amount of approx. EUR 8 million. Review 2020 The current forecast for the 2020 consolidated result continues to assume EBITDA of EUR 23 to 26 million, sales of EUR 37 to 40 million and a consolidated loss of EUR 15 to 18 million, with a pre-tax effect of EUR 17.2 million from non-cash impairments. Thomas Gutschlag, CEO of Deutsche Rohstoff AG, commented: “Overall, we have had a good start to 2021, especially as the US oil price has risen above USD 50/barrel at the beginning of the year. We are also optimistic about prices for the rest of the year. We have therefore decided to increase our production significantly in the short term. We also continue to see improved chances for the metal sector.”
Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de Contact
12.01.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Deutsche Rohstoff AG |
Q7, 24 | |
68161 Mannheim | |
Germany | |
Phone: | 0621 490 817 0 |
Fax: | 0621 490 817 22 |
E-mail: | gutschlag@rohstoff.de |
Internet: | www.rohstoff.de |
ISIN: | DE000A0XYG76, DE000A1R07G4, |
WKN: | A0XYG7, A1R07G |
Indices: | Scale 30 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1160142 |
End of News | DGAP News Service |