Magnum Hunter files for Chapter 11 bankruptcy protection
Friday, December 18, 2015
FuelFix reports that Irving, Texas-based Magnum Hunter Resources Corp. is filing for bankruptcy. The shale producer is seeking Chapter 11 bankruptcy protection.
The bulk of Magnum Hunter’s operations are in Pennsylvania’s Marcellus shale and Ohio’s Utica shale. The company intends to complete a restructuring plan with three-fourths of its creditors by April 2016.
According to FuelFix, 38 other North American oil companies have filed for bankruptcy protection, and Magnum Hunter is the 19th producer in Texas to do so since the bottom fell out on prices last year.
Via: FuelFix > Magnum Hunter seeks bankruptcy amidst oil rout
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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.