Deutsche Rohstoff AG: Further joint development with Occidental
- USD 75 million additional investments in 2023 and 2024
- Positive impact on 2023 forecast
- First-time forecast for 2024 assumes Group sales and EBITDA above EUR 100 million
Mannheim. Salt Creek Oil & Gas, a wholly owned subsidiary of Deutsche Rohstoff AG (FRA: DR0), has entered into another joint development agreement with Occidental (NYSE: OXY) in the Powder River Basin/Wyoming. The development is expected to drill 15 additional wells and commence production in 2023 (5 wells) and 2024 (10 wells). The investment volume for Salt Creek totals USD 75 million.
For 2024, the Executive Board expects group sales above EUR 120 million and EBITDA above EUR 100 million. The investments are expected to increase group revenue by approximately EUR 10 million in 2023. This forecast will be specified in the coming months. It is based on an oil price of USD 75, a gas price of USD 4 and a EUR/USD exchange rate of 1.12. Possible drilling programs that are not part of the existing forecast for 2023 are not yet included in this estimate.
For the definition of the term EBITDA, we refer to the homepage of Deutsche Rohstoff AG at www.rohstoff.de/apm/.
Information and Explanation of the Issuer to this announcement:
In February, Salt Creek had already announced a first joint venture with Occidental with an initial investment volume of USD 65 million. The total announced cooperation with Occidental thus amounts to USD 140 million investment in the development of 31 horizontal wells. The first six wells began production in September. A further ten wells will follow in the first half of 2023.
The expanded cooperation with Occidental ensures that the Company not only expects EBITDA of well over EUR 100 million in 2022 and 2023, but that the foundation has already been laid for EBITDA of over EUR 100 million in 2024. Growth potential from further possible development projects in the Group are not included in the forecast for 2023 and especially 2024.
Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten round off the portfolio. Further information is available at www.rohstoff.de
Deutsche Rohstoff AG
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