BlueCrest Energy cites potential changes to the state’s tax credits as the reason for putting gas development in Anchor Point’s Cosmo Unit on hold. The company is confident in oil production by next April.
Larry Burgess with BlueCrest…
Burgess: “And I can tell you without any question that if the tax structure changes in a way that is not favorable to the economics of this offshore project, it will not take place.”
As for oil, Burgess says BlueCrest will see production by April 2016 from an existing, previously drilled well.
Burgess: For the oil deposits, we’re going to drill from the Hansen Pad onshore down to a dept of about 7,500 to 8,000 feet, a total vertical depth, and out to about three miles, so the length of these wells are going to be about 25,000 feet. And that’s why we have a 3,000 horse power rig which can drill up to 30,000 feet. So these are very challenging wells, we have several coal seams to go through and fault zones, an hopefully we will be able to do this successfully but it is going to be a challenging drilling project.”
BlueCrest’s rig for the wells is currently being constructed in Houston, Texas, at a cost of around $46 million.
Burgess says the company plans to drill additional oil wells beginning in March or April of 2016, but that also depends on the tax credit structure.