Deutsche Rohstoff AG: Strong increase in year-end oil and gas reserves of Salt Creek Oil and Gas
Proved reserves grow by 141%/Total reserve value of 83.9 million USDMannheim/Denver. The present value of the NYMEX reserves (future cash flow discounted at 10%, so-called PV 10) of Salt Creek Energy amounts to USD 83.9 million as of 31 December 2017 (October 2016: USD 50.4 million). Reserve value has therefore grown by 66% reflecting the positive development and well performance of Salt Creek Oil & Gas during 2017.
Proved reserves have grown by 141% to 75.0 million USD (October 2016: USD 31.1 million), probable reserves stand at 8.9 million USD (October 2016: USD 9.9 million). All reserves have been calculated internally by Salt Creek Oil & Gas.
The main reason for the reserves growth is the strong production of almost all wells. The majority of the acquired wells have continued to outperform the acquisition type curve and new wells brought into production by Whiting Petroleum, Hess Oil and other operators have delivered very strong results.
Oil prices used for the reserve calculation were slightly higher in near term years. While the October 2016 reserve report assumed a WTI oil price of 51.5 USD for the initial 5 years of production, the December 2017 strip assumed an average price of 54.7 USD for the next 5 years. Over 20 years the average in October 2016 was at 65.14 USD and on December 2017 was at 52,9 USD.
A detailed overview of the reserves can be found on Deutsche Rohstoff's website shortly.
Mannheim, 19 March 2018
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Contact:
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Thomas Gutschlag
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