Luxembourg, 25 November 2015: Deutsche Oel & Gas S.A. has started the production and sale of natural gas from its Kitchen Lights Unit production region for natural gas and crude oil in Southern Alaska. The current daily production rate of 5 million cubic feet of natural gas is to be gradually increased over the coming months to up to 17 million cubic feet. The natural gas produced is of a very high quality, with a methane content of around 99%.
“The start of production marks the most important milestone in our company’s history to date. This success validates our growth strategy. From now on, we will be able to achieve sustain-able increases in sales and earnings,” said Kay Rieck, Chairman of the Board of Directors of Deutsche Oel & Gas S.A. “What began as a vision in 2011, is now a reality. Today we can proudly say that we are the first German producer to be producing natural gas in the Cook Inlet in Southern Alaska. We owe this success to our employees, partners and, above all, our investors, who have supported us on this exciting journey.”
Over the past five years, Deutsche Oel & Gas has conducted extensive explorations in the Cook Inlet and created its own production infrastructure, complete with production platform, pipeline and processing plant. The initial production volumes and revenue that are currently being achieved are to be increased in mid-2016 by at least one additional producing well. Deutsche Oel & Gas is estimating annual revenue of around USD 34 million from natural gas in 2016, which is expected to increase to more than USD 185 million a year by 2019 as a result of the continuous expansion of the largest contiguous production region in the Cook Inlet. This conservative planning is based on natural gas production alone and does not take any additional proceeds from investment subsidies from the State of Alaska (tax credits) or potential crude oil production into account.