Deutsche Rohstoff Ag: Tekton Energy commences horizontal drilling
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Two wells planned from existing pad / Further cooperation agreement signed
Denver/Heidelberg. Deutsche Rohstoff AG's US-Oil subsidiary Tekton Energy
(www.tektonenergy.com) reported today that it will commence its horizontal
drilling program near the town of Windsor this weekend. Tekton plans for
two initial wells with a lateral length of 4.100 feet (1.250 meters) per
well from its existing Rancho pad in the southern part of its acreage.
Horizontal wells of this length usually need 14 days drilling time per
well. Tekton therefore expects to complete drilling around the end of
March. It is planned to complete the two wells during April and start
production in early May. After the first month of production, Tekton plans
to get a reserve calculation prepared as basis for further financing.
Jerry Sommer, CEO of Tekton Energy, noted: 'We are very excited to launch
our horizontal program. We expect solid economic results based on the
extensive geological and technical analysis that our team performed to
prepare this program.'
The first two wells are part of Tekton's overall plan to develop the full
potential of its acreage of currently 2.300 acres. Tekton expects to drill
up to 80 gross/60 net horizontal wells on its leases. As of today, over 50
of these wells have been permitted through State and local authorities.
Comparable horizontal wells are reported to define reserves of 325.000 to
350.000 Barrels of Oil Equivalent each.
Anadarko Petroleum, one of the two largest operators in Wattenberg and also
cooperating with Tekton close to Windsor, released yesterday that the
company plans to nearly double its horizontal drillings due to 'exceptional
economics' and 'rate of returns exceeding 100%' at current oil prices.
(http://www.anadarko.com/Investor/Pages/NewsReleases/NewsReleases.aspx?rel
ease-id=1786768)
Tekton also reported that it entered into a cooperation agreement with
Extraction Oil & Gas LLC, of Denver, Colorado (www.extractionog.com)
Extraction is a newly formed, private equity financed company with acreage
close to Tekton in the north-western part of the Wattenberg field. Both
parties agreed that:
- Extraction will participate in Tekton's first two wells on a promoted
basis.
- Extraction and Tekton have entered into an Area of Mutual Interest
(AMI) and will share acreage and operations with each company owning
50%. Acreage acquisition is already under way and will be announced at
a later date.
- Extraction and Tekton will jointly develop Section 13-6N-67W on a
50%/50% basis.
This move will likely increase Tekton's acreage by over 50%.
As part of its field development plan, Tekton is currently also preparing
further 3D-seismic surveys in Section 22-6N-67W west of Windsor and over
the joint acreage with Extraction in Section 13-6N-67W. Both surveys should
be completed by the end of March, 2013.
Funding of the first two wells will mainly be provided by Deutsche Rohstoff
AG in the way of a capital increase as well as a convertible loan to
Tekton. Deutsche Rohstoff AGs share in Tekton will increase to 68%, in case
of conversion of the loan above 70%.
Titus Gebel, CEO of Deutsche Rohstoff AG, commented: 'It is exciting to
participate as sole listed German company in the extremely dynamic US
upstream shale oil business. Tekton's management has again demonstrated
it's outstanding capability to progress the project quickly and with great
responsibility for local and environmental matters. The cooperations
recently signed highlight the opportunities to grow Tekton even beyond our
initial expectations.'
Heidelberg, 21 February 2013
Deutsche Rohstoff AG (Heidelberg, Germany), listed in the Entry Standard
segment of Frankfurt Stock Exchange, is establishing a new primary
producer. The company's focus is placed on gold, oil & gas and so called
high tech metals such as tin, tungsten, and rare earth metals. All projects
are located in countries marked by political stability, the core area being
Germany. The business concept is based on redeveloping deposits which have
been well explored in the past. For more information please visit
www.rohstoff.de.
Contact:
Thomas Gutschlag
gutschlag@rohstoff.de
+49 6221 871 000
End of Corporate News
Unternehmen: Deutsche Rohstoff AG - ISIN: DE000A0XYG76