- New drilling technique reduces drilling costs and time
- Negotiations under way with Alaska Industrial Development and Export Authority (AIDEA) concerning local natural gas supply
- IPO planned for first quarter of 2016
Luxembourg, 4 December 2015: Deutsche Oel & Gas plans to double natural gas production in its Kitchen Lights Unit production region in Southern Alaska in 2016. To achieve this, it plans to drill an additional natural gas well, using the so-called dual-gradient method. This technique enables production from several formations at the same time. In this way the same outputs are achieved as from two separate wells – but much faster and more cost-effectively. Overall, it is planned to increase the daily production of natural gas to at least 30 million cubic feet.
Deutsche Oel & Gas continuously reviews other alternatives over and above its existing supply agreements. For instance, the company is currently negotiating a long-term local supply agreement for natural gas with the Alaska Industrial Development and Export Authority (AIDEA).
“The dual-gradient method enables us to significantly reduce drilling costs and drive production forward more efficiently. This sustainably increases our company’s profitability,” said Kay Rieck, Chairman of the Board of Directors of Deutsche Oel & Gas S.A. “We have been engaged in a continuous and constructive exchange with AIDEA for years. The current negotiations are an expression of our business partnership.”
Another important step in 2016 will be the IPO, which is scheduled for the first quarter – subject to a positive capital market environment. As an expression of his confidence in the sustainably positive performance of the company, Kay Rieck, who indirectly holds a majority stake in Deutsche Oel & Gas S.A., has committed to a holding period of three years for his shares. He has also opted to forego his dividend entitlement during this period.