RE: Anything25 May 2023 12:33
Deutsche Rohstoff AG: 1876 Resources acquires gas gathering pipeline infrastructure
USD 14 million purchase price/infrastructure improves acreage development cost structure
Mannheim/Denver. 1876 Resources, formerly known as Cub Creek Energy, signed a purchase and sale agreement and simultaneously closed on the acquisition of existing gas gathering pipeline infrastructure on its Powder River Basin acreage in Wyoming. Under the purchase agreement, approximately 59.3 kilometers of pipeline and surface tanks and equipment will be acquired.
The pipeline connects all of 1876 Resources' existing well pads and gathers other operated gas production in the region. Currently, the pipeline has a capacity of 5,000 mcf/day and can be expanded to 10,000 mcf/day in the near-term.
The investment will have multiple positive implications for 1876 Resources:
1876 plans to drill 11 wells in 2023 and 2024 according to Deutsche Rohstoff AG's guidance and is evaluating additional plans to expand its drilling program in the coming years.