In this podcast, Kay Rieck, founder of Deutsche Oel & Gas S.A. (DOGSA), provides detailed insight into the origin and development of the Kitchen Light Unit in Cook Inlet, Alaska. Rieck explains that he personally acquired the production rights for the area. The acquired production rights covered over 84,000 acres.

A crucial step was transporting a jack-up rig from Houston to Alaska. A Chinese vessel was used, resulting in a $10 million fine due to the Jones Act, a law protecting the American economy. Despite this hurdle, the team began drilling on schedule and was able to prove oil and gas deposits. In the following years, further drilling was conducted to develop the production area and maintain the production rights.

A significant milestone was the construction of a production platform, standing on an 1,800-ton steel leg anchored in Cook Inlet. This platform, along with a 22-kilometer pipeline transported from Singapore to Mexico and cemented there, forms the basis of the infrastructure. The pipeline was brought to land, where a processing facility was built that can be used for both gas and future oil production.

Rieck further reports that DOGSA concluded gas contracts worth over 700 million US dollars with gas suppliers in Alaska, with Enstar being the largest customer. The daily production rate was 25 to 30 million cubic feet of natural gas at record prices.

At the conclusion of the podcast, Rieck explains the challenges faced during DOGSA’s planned IPO. Despite recognition from industry giants like Shell and Exxon, the IPO was cancelled, likely triggered by concerns from a shareholder. This shareholder had expressed doubts about the cash flow model, which led to uncertainty and ultimately prevented the IPO.