Deutsche Rohstoff AG: Reserves report 2025 - Oil and gas reserves reach record level, present value near USD 500 million

• Reserves increase by 25% to 54 million BOE
• USD 452 million present value of proved reserves (previous year: USD 386 million)
• Wells in production generate USD 562 million of cash flow (previous year: USD 468 million) with a present value of USD 381 million (previous year: USD 313 million)
• Over USD 1 billion in future cash flow from proved and probable reserves (previous year: USD 892 million)

Deutsche Rohstoff AG today published the results of its annual oil and gas reserve reports. Independent reserve auditors calculate the production volumes, future cash flows of the reserves and their present value.

The reserve values are calculated using the oil price (WTI) and natural gas (Henry Hub) forward curve as of 31 December 2024. The average WTI according to the forward curve at the end of 2024 over the next 5 years USD 65.70/barrel (previous year USD 66.10/barrel).

The reserve values significantly exceed the previous year's value. Since last year, the present value of proved reserves has increased by 17% and reserves have increased by 43% despite record production of around 5.5 million BOE in 2024. The increase in reserves is the result of a successful drilling program and associated acreage development.

Reserves are reported in the categories "proved", "probable" and "possible". In addition to the reserve report, there is great potential for further wells, as possible reserves are not part of the reserve report and no proved or probable reserves are recorded on large parts of the undeveloped acreage.


Proved developed reserves

The proved developed and producing reserves show strong growth of 30% and increase to 24.6 million BOE (54% oil) compared to 18.9 million BOE in the previous year (52% oil). These reserves are expected to result in a total net cash flow of USD 562 million. The discounted value of producing wells increased to USD 381 million at 31 December 2024, a significant increase from USD 313 million in the previous year.

Produced reserves were fully replaced and even increased. This highlights the Company's successful growth strategy, which was enabled by the addition of new wells in Wyoming and the positive production development of numerous existing wells.

Net cash flow is calculated on the basis of revenue from oil and gas reserves (BOE) less production taxes, operating expenses (OPEX) and capital expenditure (CAPEX). To determine the present value, the net cash flow is discounted by 10% (so-called PV10). Partner shares and royalties have already been deducted.


Proved reserves & probable reserves

The present value of the proved reserves increased to USD 452 million compared to USD 386 million in the previous year. The present value of the proved & probable reserves also increased to USD 493 million (previous year: USD 420 million). The future net cash flow of the proved reserves is expected to be USD 859 million (previous year: USD 687 million) and, together with the probable reserves, will rise to just over USD 1 billion for the first time (previous year: USD 892 million).

Proved reserves increased by 43% to 44.8 million BOE (62% oil), compared with 31.4 million BOE (62% oil) in the previous year.

Proved and probable reserves of undrilled wells, include almost exclusively wells in the Niobrara formation and only 4 wells into the Mowry formation.


Reserves at constant WTI oil prices 60 and 80 USD

Assuming a constant oil price of USD 60/barrel and a Henry Hub gas price of USD 3.0, the present value of the proved reserves increases by 17% year-on-year to USD 366 million and the total present value of the proved and probable reserves by 19% to USD 394 million. Assuming USD 80/barrel and a Henry Hub of USD 4.0 over the production period, the present value of the proved reserves increases by 16% year-on-year to USD 680 million and the present value of the total reserves by 11% to USD 784 million.

Even with a conservative oil price of just USD 60, the present value of the proved reserves amounts to an impressive USD 366 million (previous year: USD 312 million). This highlights the strong economic stability of the existing production and confirms the sustainable value of the Group's subsidiaries, even at lower prices.

Reserves are valued for the main subsidiaries (98% of reserves) by independent reserve auditors using standards accepted by the US Securities and Exchange Commission (SEC). In accordance with SEC guidelines, only proved and probable wells within a certain radius of the existing production are included in the reserves report.

Hedging transactions and the resulting effects are not recognized as part of the reserves.

A detailed overview can be found on the Deutsche Rohstoff website, please follow this link.


Mannheim, 20 February 2025


Contact
Deutsche Rohstoff AG
Phone +49 621 490 817 0
info@rohstoff.de