Tulip Oil has agreed to acquire a 55% shareholding in Rhein Petroleum GmbH from Deutsche Rohstoff. This will reduce Deutsche Rohstoff's shareholding in Rhein Petroleum from its current 80% to 25%. Rhein Petroleum GmbH's other shareholder Herzford International Limited is selling its entire 20% shareholding to Tulip Oil. Following these transactions, Tulip Oil will hold 75% and Deutsche Rohstoff 25% of Rhein Petroleum GmbH's shares.
Deutsche Rohstoff AG will receive 6.7 million Euro in cash as well as up to 5.1 million Euro depending on the achievement of certain milestones. Deutsche Rohstoff AG will also be refunded its shareholder loan of 0.5 million Euro.
Dr. Titus Gebel, CEO of Deutsche Rohstoff AG, said, "We are very pleased to have found a partner that has excellent technical know-how and backing from a strong investor. We look forward to developing together the great potential existing in the licence areas of Rhein Petroleum in Southern Germany".
Dr. Ir. Roelof Platenkamp, Executive Chairman of Tulip Oil, added, "We see substantial potential in the license areas of Rhein Petroleum which fit perfectly into our business model. Both partners complement each other's abilities and it is very important for us to continue to make use of the expertise of Rhein Petroleum's former managers."
Ir. Erik Steenken, who is CEO of Tulip Oil Holding and will be appointed as CEO and managing director of Rhein Petroleum following completion of the acquisition, explained: "We are convinced that through application of modern technology we will be able to extract oil and gas from former, abandoned fields as well as from yet to be discovered oil and gas accumulations which will boost the local economy. Tulip Oil's management team brings a broad experience gained in Germany, Austria, and the Netherlands required to efficiently produce oil and gas in an environmentally sensitive way."
For 2011 and 2012, Tulip Oil Holding and Deutsch Rohstoff have agreed to acquire extensive 3D-seismic over Rhein Petroleum's license areas in the Rhine Valley and in Bavaria. State of the art seismic interpretation will give a better understanding of the composition and structure of potentially oil and gas bearing layers and thereby significantly increases the chances of discovery. Over the last 20 years, 3D seismic technology has been considerably enhanced. However, it has barely been applied in the
Rhein Petroleum license areas as oil and gas exploration has only been carried out on a small scale in Southern Germany since the end of the 1980s.
After analyzing the seismic results, Rhein Petroleum intends to commence drilling and test production from 2012 onwards. In the years to come, Rhein Petroleum and its shareholders are planning an investment of up to 20 million Euro.
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