A further USD 33 million in government subsidies is ready to be paid out.
After spending the winter in ice-free Port Graham to protect it from the autumn and winter weather conditions, the Spartan 151 drilling platform was transported back to the Kitchen Lights Unit in the Alaska’s Cook Inlet a few days ago to begin its work there for the coming drilling season. Last night, around 2.00 a.m. German time, drilling of the third well commenced in the Deutsche Oel & Gas development region – about two weeks ahead of schedule.
The team from the U.S. subsidiary of Deutsche Oel & Gas and the drilling platform operator had already successfully completed all tests and checks required by the State of Alaska for environmental regulations and the operation of the drilling platform beforehand. All necessary necessary permits for the third well were therefore granted.
The U.S. subsidiary of Deutsche Oel & Gas is therefore not only right on track with the agreed procedure: the exploration plan agreed with the State of Alaska and approved until 2016 has also been fully complied with to date.
As with the previous two wells, the reservoir of the third well is also expected to be much larger than originally thought. This well is being drilled in close proximity to the first two successfully drilled wells, and is therefore in the same geological formation.
The government subsidisation of all drilling and infrastructure costs – one of the key elements of the concept of developing the production region in Alaska – is also progressing according to plan. The State of Alaska is once again due to pay out more subsidies as reimbursement for investments made so far: this time in the amount of USD 30 million. This will make a total of around USD100 million in subsidies that the State of Alaska has already paid out for the development of the production region.