If 88E kicks..., page-23

Great find Avignon !!!

Hadnt seen this one.

I'll quote from the item,

"There’s one more thing, however — money. Alaska has something else – a generous state incentive system. Through a combination of tax credits (negotiated royalty reductions are possible, too) the state of Alaska can pay up to 60% to 70% of the cost of exploration wells and up to 40% of development costs in some cases if discoveries are made. This is huge for small independents, who use tax credit certificates issued by the state to raise financing."

There’s trouble brewing, however. The program’s escalating costs, over $500 million last year and headed to $700 million this year, has become unaffordable for the state, which has been hit hard by low oil prices.
Earlier this year Gov. Bill Walker slammed a $500 million ceiling on tax credit expenditures, while promising to pay $200 million in additional credit applications for credits later. — Tim Bradner

Poster Comment:

All the more important for the state to get the oil flow moving out of these viable projects. The short term hurt will well and truly be made up for by the long term gain.

If 88 Energy comes up with excellent production metrics then Bill Walker will surely pull his head in as its a win win for Alaska if 88 Energy fulfills its promise at Icewine.

I'm beginning to truly think that the development of these unconventional plays is becoming more and more precedent on WHEN Icewine MAY come into production due to the potential size of the project and all the logistics and infrastructure it will attract.

d.