Deutsche Rohstoff AG: Update on oil & gas activities
22.06.2023 | DGAP
The oil and gas production of the Deutsche Rohstoff Group continues to develop as planned. The current development projects Lost Springs and Huckleberry have started production. Existing production is in line with expectations. So far in Q2, numerous wells essential to the 2023 and 2024 forecast have been completed. Most notably, these include the Huckleberry pad drilled by Salt Creek Oil & Gas in partnership with Oxy and the Lost Springs pad drilled by subsidiary 1876 Resources (formerly Cub Creek Energy).Production on the Huckleberry pad began production ("flow-back") during May slightly earlier than originally planned and will peak in the coming months. Salt Creek invested approximately USD 60 million in the total of 10 wells since mid-2022. The Huckleberry pad will contribute significant volumes to the Group's production in the 2nd half of the year.
The Lost Springs pad also started flow-back this week. It is 1876 Resources' first pad on its majority-owned acreage in Wyoming. Drilling and completion proceeded without operational issues and was completed slightly ahead of schedule.
1876 Resources has also signed a contract for a drill rig for 6 additional wells. As part of the forecast, 1876 Resources expects to drill a total of 8 additional wells in the second half of 2023 and the first half of 2024, in addition to the 3 new producing wells from the Lost Springs pad. The first 6 of these 8 wells can start with the now contracted drill rig during the month of July on 1876 Resources' acreage and are drilled from two pads. The remaining two wells are planned for 2024.
Production from existing wells in the U.S. subsidiaries also continues as expected, in some cases exceeding expectations. The production start of Huckleberry and Lost Springs should result in a strong 3rd and 4th quarter of 2023.
Jan-Philipp Weitz commented, "We are pleased to report that all of the Group's development projects are progressing as planned and we are able to meet our forecasted start dates. We have now successfully developed our first multi-well pad in Wyoming with the Lost Springs pad and look forward to seeing production results in the coming months. The development over all Group companies shows that we are able to efficiently implement continuous development."
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