Mannheim / Denver. Salt Creek Oil & Gas has signed a sales agreement with Northern Oil and Gas (Northern) for the majority of its land in the Williston Basin, North Dakota. The selling price is approximately USD 59,6 million. It consists of $ 40 million in cash, 6 million shares in Northern and approximately $ 7,6 million in return of investments. The transaction is subject to the usual reservations of review by the buyer and purchase price adjustment rules. Both parties expect the sale to be completed within 40 days. Salt Creek has a 6 month hold period in respect of the shares. If Northern stock does not close above $ 6 per share for a period of five days during the six months, Salt Creek will be entitled to receive the difference between the share price at the end of the six month period and $ 2.
Salt Creek had acquired land in the Williston Basin of North Dakota in December 2016 for 38,1 million USD. With the sale, Salt Creek expects to realize a pre-tax profit of approximately $ 12 million. In addition, Salt Creek achieved a pre-tax profit of $ 3,3 million last year. In addition, a small portion of the land held by Salt Creek is not part of the transaction. These areas represent a reserve value of approximately 0,9 million USD. They remain at Salt Creek.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: "With today's sale, we were able to sell the project very profitably after just 17 months of holding. This is a very good result of the work of Tim Sulser and his team. We want to invest the freed-up funds in new projects in the lucrative US oil and gas sector. In addition, we expect to benefit from the shares of Northern. The Williston Basin proves to be fundamentally very strong with steadily better operating results. "
Mannheim, 26. April 2018
Deutsche Rohstoff 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. Further information at www.rohstoff.de
