Antero pays $9 million to delay or terminate drilling contracts
Tuesday, May 5, 2015
According to Columbus Business First, Antero Resources Corp. shelled out $9 million in the first quarter of 2015 to delay or end drilling contracts. Drilling and completion costs totaled $569 million for the company in the first quarter. Antero’s production increased during the first quarter, but the company decreased the number of its rigs from 21 to 11.
In North Dakota and Texas, shale oil plays have been hit harder than in the Marcellus and Utica Shale plays.
Antero, based in Denver, is an active driller in both the Marcellus and Utica Shale plays. In January, the company acquired 12,000 acres in Ohio’s Utica Shale, mostly in southeastern Monroe County. Antero also gained 115 new drilling locations in that deal.
Via: Columbus Business First > Oil and gas companies spending millions to terminate drilling contracts
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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.