production

Stimulating natural gas and oil production by hydraulically fracturing horizontal wells doesn’t pose a big risk for triggering earthquakes that are strong enough for a human to feel, but other types of energy-related activities could make the ground noticeably shake, according to the conclusions of major government science report released on Friday.

Stimulating natural gas and oil production by hydraulically fracturing horizontal wells doesn’t pose a big risk for triggering earthquakes that are strong enough for a human to feel, but other types of energy-related activities could make the ground noticeably shake, according to the conclusions of major government science report released on Friday.

Denver-based Antero Resources is unloading its Arkoma Basin assets and redeploying capital to Appalachian shale plays while Vanguard Natural Resources LLC, which is buying Antero’s mostly natural gas Arkoma assets for $445 million, is establishing a new operating area with the deal.

Inspectors with the Pennsylvania Department of Environmental Protection (DEP) found methane gas in three residential water wells and two streams in Bradford County. DEP has launched an investigation to determine the source.

North Carolina’s assistant state geologist said estimates put forth by supporters of natural gas development in the Tar Heel State are overly optimistic and actual reserves are probably much lower.

A new investor presentation posted early Tuesday by Chesapeake Energy Corp. offered 32 pages of onshore production and financial numbers, as well as a full-page statement that opened the document with the headline, “It’s been a tough five weeks, but better days ahead.” By Tuesday afternoon the page, originally the second page of the 32-page presentation, had been deleted with no explanation.

Los Angeles-based Occidental Petroleum Corp. (Oxy) has named a new vice president/treasurer, Christopher Stavros, 48, who has been the oil/gas exploration and production (E&P) company’s director of investor relations since 2006. Stavros will continue to oversee the investor relations function in his new capacity, according to Oxy CEO Stephen Chazen, who said Stavros has a comprehensive understanding of both the financial and operational aspects of Oxy and its E&P business. Before joining Oxy in 2005, Stavros held positions with Ernst & Young, Bristol-Meyers Squibb, Prudential Securities and UBS. He holds a bachelor’s degree in accounting from Boston University and an MBA from the University of Rochester’s Simon School of Business.

A regional approach to siting drilling infrastructure in Pennsylvania’s Marcellus Shale is needed to help minimize development in core forest and productive agricultural lands and to decrease potential risk to waterways, according to researchers at Pennsylvania State University. A study conducted by the university’s College of Agricultural Sciences found that shale gas development is causing rapid landscape change. “The development of new roads to support drilling could affect forest ecosystem integrity via increased fragmentation,” said Patrick Drohan, assistant professor of pedology. Drohan estimated that slightly more than half of the well pads in Pennsylvania are on agricultural land and most of the rest are on forestland. The study found that drilling is competing with food production for space on the landscape.

Natural gas bulls already have seen the writing on the wall for exploration and production (E&P) companies’ earnings reports for 1Q2012. Minus those with gas hedging programs or an already solid turn to liquids and oil basins, it’s not going to be a pretty picture.