Luxembourg, 7 October 2015: Deutsche Oel & Gas S.A. brought its Kitchen Lights Unit natural gas and crude oil production region to the production stage in 2015 and prepared well KLU#3 for the start of natural gas production in November 2015.
In September 2015, the State of Alaska recognised the existing exploration well KLU#3 as an official development well for four hitherto undiscovered production zones in the Cook Inlet Basin, and reduced royalties from 12.5% to 5.0% of gross production revenues. This decision to reduce royalties for the respective oil and gas production applies for a ten-year period.
Over the past few years, Deutsche Oel & Gas has consistently adhered to its exploration plan as approved by the State of Alaska. All planned measures were also implemented in full in 2015. Further exploration and production wells in the Kitchen Lights Unit are already planned for 2016, to significantly increase natural gas production.
The company also successfully completed its own production infrastructure in 2015, with production platform, pipeline and processing plant. Natural gas production is scheduled to commence from November 2015, in order to meet the delivery under the first natural gas supply agreement, which enters into force in November 2015. Various gas supply agreements have already been entered into with prestigious customers for the entire daily natural gas production volume from well KLU#3 .
“We are delighted to receive this further vote of confidence from the State of Alaska, which demonstrates to us once again that our exploration, and soon our production operations, are urgently needed here in the region,” said Kay Rieck, Chairman of the Board of Directors of Deutsche Oel & Gas S.A.