Even as it deals with a Chapter 11 bankruptcy, Oklahoma City-based Chesapeake Energy is among those companies that acquired permits for more drilling in Pennsylvania during the month of August. But indications show the company is not among major operators with an interest in a large number of permits to drill.
The state’s Department of Environmental Protection said Chesapeake and three other major operators accounted for only 10 permits during the month while 38 permits for shale gas wells were issued to EQT Corp., considered to be the largest U.S. natural gas producer. A total of 77 permits were issued by the state for the month.
EQT shut in production volumes in May and received only a few permits for June and July but apparently cranked up its interest for the fall and winter months as oil and gas prices go up. In July, the company’s president told analysts that EQT had returned all of the gas it pulled from production in July.
The 77 permits were down 24% from a year ago.
The state’s four other large producers — Southwestern Energy Co., Cabot Oil & Gas Corp., Range Resources Corp. and Chesapeake Energy Corp. — accounted for only 10 permits in August, consistent with lower activity throughout the summer as commodity gas prices at the benchmark Henry Hub stayed below $2/MMBtu until starting to rise in August.
Source: SPGlobal.com