10/16/2019 | Press release | Distributed by Public on 10/16/2019 01:24
Rhein Petroleum drilling confirmed economic viability/New bond planned
Mannheim. Eleven Horizonal wells from the Olander drilling pad, which Cub Creek Energy began in June and finished in September, will be completed from next week on. Production is expected to commence in December.
Due to the current decline in activities in the US oil and gas sector, Cub Creek has been able to agree very good prices with major service providers, which are well below expectations. As things stand at present, the original budget of USD 59 million for the entire drilling program will be undercut by around USD 10 million. Accordingly, the profitability of the wells will continue to improve. With an oil price of USD 55 per Barrel over the term, the investments are expected to pay for themselves in under two years.
As part of the latest discovery, Steig-1 north of Karlsruhe, Rhein Petroleum drilled a 150-metre thick layer of oil-bearing sands. This was announced by the majority shareholder Tulip Oil. The well did not reach a water contact in the oil-bearing sands. Rhein Petroleum conducted a production test that produced 4.000 barrels of oil and confirmed the economic viability of the Steig-1 well. Furthermore, the test has provided the necessary data for the next phase of production and appraisal with horizontal wells. Rhein Petroleum is currently preparing a development plan for the field and has begun preparations to apply for the necessary permits. To finance further development, Rhein Petroleum carried out a capital increase of EUR 20 million, in which Deutsche Rohstoff AG took part according to its 10% stake.
To take advantage of the favorable capital market environment, Deutsche Rohstoff AG is considering placing a new corporate bond in the coming months. The new funds could support expansion in the USA.
Mannheim, 16 October 2019
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, copper, rare earths, tungsten and tin complete the portfolio. Further information can be found at www.rohstoff.de