Deutsche Rohstoff AG / Key word(s): Miscellaneous 22.11.2016 06:47 Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Deutsche Rohstoff: Salt Creek Oil & Gas acquires US oil and gas assets in North Dakota Expected total revenue above USD 200 million/Purchase price USD 38.1 Mio. Mannheim/Denver. Salt Creek Oil & Gas, a subsidiary of Deutsche Rohstoff AG, announced today that it signed a definitive purchase and sale agreement to acquire non-operated assets in the Bakken and Three Forks plays of the Williston Basin for USD 38.1 million. The assets consist of 1,795 net mineral acres, working interest in 60 gross producing wells, and in approximately 90 additional infill development wells. Average working interest of Salt Creek in the wells is about 8 %. The current production of 550 BOEPD attributable to Salt Creek, as well as drilled uncompleted wells are expected to generate revenues of USD 6.5 Million in 2017 and will result in an EBITDA contribution to Salt Creek of USD 4.8 million, using a 2017 WTI average of USD 50/barrel. Based on the current expectations & budgeting, revenues and EBITDA will notably increase over the next years. All wells are non-operated, but are developed and operated by high-quality companies including Hess, EOG Resources, Statoil, Whiting and XTO. The USD 38.1 million transaction, which has a 1 September 2016 effective date, is subject to customary purchase price adjustments and closing conditions. From this day onward, revenues and expenses will be ascribed to Salt Creek. The management expects to finalize the acquisition in December 2016. The transaction will be funded by a combination of debt and equity, including a Reserved Based Lending facility from a US bank. After the transaction Deutsche Rohstoff will hold a 90 % interest in Salt Creek Oil & Gas. The 90 development wells, which have not yet been drilled but make out a significant share of the value of the assets, are expected to be drilled by operators over the next 3 to maximum 5 years. Needed investments will primarily be financed out of the ongoing cash flow. Based on the November 15th 2016 WTI Future, total revenue in the full development case of all wells over a 20 year period will amount to above USD 200 million, EBITDA will be above USD 140 million. This estimation is based on the assumption that all outstanding wells will actually be drilled and that the expected production is generated. Tim Sulser, CEO of Salt Creek Oil & Gas, commented: "This transaction is an important milestone for Salt Creek. The position represents some of the highest-quality oil and gas development acreage in the US, and we plan to use the asset to build a significant position in the Williston Basin. Further, working with a diverse group of operators allows us to participate directly in rising prices and benefit from further efficiency gains." Thomas Gutschlag, CEO of Deutsche Rohstoff, said: "We are delighted that Tim Sulser and his team succeeded in acquiring this position, which secures a long-term and economically robust production and adds a strong second pillar to our US oil and gas business." Mannheim, 22 November 2016 Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de. Contact: Deutsche Rohstoff AG Thomas Gutschlag Tel. +49 6221 871 000 [email protected] 22.11.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Deutsche Rohstoff AG N1, 1 (Stadthaus), 3. Etage 68161 Mannheim Germany Phone: 06221-87100-11 Fax: 06221-87100-22 E-mail: [email protected] Internet: www.rohstoff.de ISIN: DE000A0XYG76, DE000A1R07G4, WKN: A0XYG7, A1R07G Indices: Entry Standard (Performance TOP 30) Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange; Open Market (Entry Standard) in Frankfurt End of Announcement DGAP News-Service ---------------------------------------------------------------------------