Efficiency of the Rhein Petroleum well confirmed / New bond planned
Mannheim, Drilling at Olander Well, which Cub Creek Energy commenced in June and completed in September, will be completed from next week. The start of production is expected to take place in December.
Due to the currently declining activity in the US oil and gas sector, Cub Creek has been able to negotiate very good prices with key service providers, well below budget. As things stand, the original 59 $ 1 million budget for the entire drill program is undercut by approximately $ 10 million. Accordingly, the profitability of drilling will continue to improve. With an oil price of 55 USD per barrel over the term, the investment is expected to pay for itself in less than two years.
As part of the latest discovery, Steig-1, north of Karlsruhe, Rhein Petroleum has drilled an 150-meter-thick layer of oil-bearing sands. This has been announced by the majority shareholder Tulip Oil. The hole has no oil-water contact encountered. Rhein Petroleum carried out a production test during which 4.000 barrels of oil were extracted and confirmed the economic viability of the find Steig-1. The test also provided the necessary data for the next phase, in which horizontal drilling will provide both production and further exploration of the structure. Rhein Petroleum is currently preparing a development plan for the field and has started preparing for the necessary permits. To finance the further development, Rhein Petroleum has carried out a capital increase for 20 million EUR, in which Deutsche Rohstoff AG participated as part of its 10% stake.
In order to take advantage of the favorable capital market environment, Deutsche Rohstoff AG is considering placing a new corporate bond in the coming months. The additional funds could accelerate US expansion.
The German raw material identifies, develops and sells attractive natural resources 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. More information at www.rohstoff.de
Press release Mannheim, 16. October 2019, German commodity AG
