Deutsche Rohstoff AG: Acceleration of the 2026 drilling program
08:00 Uhr | DGAP
Acceleration of the 2026 drilling program - US subsidiary 1876 accelerates development with additional drilling rig
- Second rig to commence drilling on 16 March
- 10 wells could start production around mid-year
- Expansion of drilling program to well over 20 wells possible by year-end
- High flexibility of US organization allows rapid response to increased oil prices
Deutsche Rohstoff AG will now be active in Wyoming with two drilling rigs through its US subsidiary 1876 Resources. While one drilling rig has been drilling four wells in the eastern part of the area since the end of February and will finish drilling at the end of March, a second drilling rig will initially drill three wells in the western area next week. Two of these will be in the Niobrara Formation and one in the Mowry Formation. A further three wells are already firmly planned, meaning that around middle of the year, ten gross wells with a net share of around 75% will be able to start production.
If oil prices remain well above last year's price level of around USD 65, 1876 Resources could drill well over 20 wells this year. Both drilling rigs could be kept active until the fourth quarter or beyond.
The Group's hedge book was significantly less extensive at the end of February than in previous years, meaning that with ten wells developed by 1876, the Group's hedging ratio for 2026 is currently below 30%. If more than 20 wells are drilled, the hedging ratio would be around 20%. This means that the majority of production can currently be sold or hedged at higher prices. An expansion of hedging is being reviewed on an ongoing basis.
Salt Creek Oil & Gas' non-operating joint venture continues to develop positively, and production from the nine Niobrara wells, in which Salt Creek will invest approximately USD 40 million, is scheduled to commence in the middle of the year.
Jan-Philipp Weitz, CEO, commented: "We are once again demonstrating that our organization can respond extremely agile and flexible to changing conditions. The increased prices and our optimal preparation for possible development scenarios in 2026 allowed us to immediately contract an additional drilling rig last week, which was already active in the Powder River Basin and can begin work immediately on a prepared drilling location. Our moderate hedge book allows us to participate to a large extent in the increased oil prices."
Further details of the drilling program and a possible adjustment to the guidance for 2026 will depend on developments after the first ten wells and will be communicated as soon as a decision can be made on the ultimate nature and scope of the development program.
Mannheim, 13 March 2026
