Magnum Hunter needs to raise $9 million by July 10
Saturday, June 27, 2015
Magnum Hunter Resources Corp. has to provide its lenders $65 million by July 10, but as of June 23, the company needed $9.4 million more to reach that amount.
Columbus Business First reports that Magnum Hunter is focusing on liquidity initiatives. Banks don’t want oil and gas assets while the market is down, so banks are accommodating oil and gas producers so they don’t end up in default. Part of the money already raised was from the sale of Tyler County, West Virginia, acreage, netting $33.6 million.
Magnum Hunter has 128,000 acres under lease in the Utica and 80,000 acres under lease in the Marcellus. The company has subsidiaries in pipelines and saltwater disposal, too.
Via: Columbus Business First > Utica shale downturn: Prominent driller has 3 weeks to raise $9 million
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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.