Net inflow of a total of USD 220 million / option to another USD 60 million
Heidelberg / Denver. Tekton Energy has announced the completion of the review phase by the buyer, its former partner, Extraction Oil & Gas, Denver. The sale of the Windsor project is now complete. Tekton will receive an additional $ 18 million in addition to the $ 202 $ advance paid in April, resulting in a net inflow of $ 220 million. The full amount has already been received.
The 20 million higher net inflow than the purchase price of $ 200 million results from the agreement that the purchase will be retroactive to 1. January 2014 applies. The buyer has tecton all expenses starting from the 1. January, and in return all proceeds received from that date. The difference amounts to USD 20 million in favor of Tektons. Tekton Energy's total cash will therefore be $ 225 million. The Company has no significant liabilities to any party other than Deutsche Rohstoff.
Titus Gebel, CEO of Deutsche Rohstoff AG, commented: "We are very pleased that the contract was completed. This transaction is a great success in our young company history. The revenues and experience gained in the US oil business give us the opportunity to grow dynamically on our own. In particular, the team in the US can now focus fully on developing new projects. "
The shareholders of Tekton have decided to immediately repatriate the loan to Deutsche Rohstoff AG including interest in the amount of approximately USD 39 million and to distribute the remaining funds to USD 1,5 million. Deutsche Rohstoff USA, which, as the 100% subsidiary of Deutsche Rohstoff AG, has invested the USD 30 million equity in Tekton, will receive a distribution of approximately USD 129 million.
Tekton retains its 560 acres (2,3 km2) portion of the area in the so-called Magpie area south of Windsor. The area is considered highly prospective by management. Extraction has a right of first refusal, which must be exercised before the start of the planned drilling program, at the latest in March 2015. Should Extraction make use of this, Tekton will receive a further USD 60 million. Deutsche Rohstoff intends to expand its activities in the US oil & gas business. More details are to be published in the coming weeks.
Heidelberg, 30. May 2014
Deutsche Rohstoff, listed in the Entry Standard, is building a new raw material producer. The focus is on oil & gas and so-called high-tech metals such as tungsten, tin and rare earths. All projects are located in politically stable countries with high environmental standards. The business model is based on the (re-) development of deposits that have already been well explored in the past. Further information on Deutsche Rohstoff at www.rohstoff.de.
