Deutsche Rohstoff (DRAG) has a track record of shareholder value creation through timely investments in the resources sector across a range of commodities and geographies. The company’s investment in Tekton Energy, for example, generated a 365% return on equity over three years. DRAG’s current focus is on the development of oil and gas opportunities onshore US. Management expects to make strong returns on investment, drilling unconventional acreage in the Williston Basin and the Wattenberg field, while also using the company’s balance sheet to acquire additional assets. Future returns will be susceptible to management’s ability to anticipate commodity price cycles, structure transactions and exploit acquired assets.
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