Antero cuts spending, reduces rigs but still plans for production growth of 9%
Monday, May 4, 2020
Although Antero Resources is cutting its 2020 capital budget again, reducing drilling rigs in the Appalachian Basin and deferring 20 well completions into 2021, it’s projecting 2020 production growth of 9%, according to Kallanish Energy.
Antero is reducing its 2020 capital spending by 35% from an initial $1.15 billion to the current $750 million. The new budget is 41% lower than what the company spent on capital projects in 2019.
Additionally, it is reducing its rig count from the four rigs in early 2020 to one rig for the rest of the year and cutting its completion crews from three to one in May for the rest of 2020.
Learn more: Kallanish Energy > Antero sticks with full-year 2020 production growth of 9%
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.