Colorado-based Antero Resources has agreed to sell a portion of its Utica shale natural gas for foreign export from the Gulf Coast.
The company intends to sell up to 200 million cubic feet per day to Texas-based Cheniere Energy Inc. to be turned into liquified natural gas for shipment by tankers to overseas destinations.
The gas will be shipped from Ohio via pipelines to the Sabine Pass Liquefaction LLC and its plant in Louisiana’s Cameron Parish. The volume being turned into LNG will increase as the plant grows.
That news was released on Thursday in an earnings call with financial analysts and the media.
Antero Resources reported that it set a company record for production in the second quarter, fueled by liquids production from the Utica and Marcellus shales.
The company averaged a record 1 billion cubic feet equivalents per day in July, said CEO Paul M. Rady.
The company’s net daily production in the second quarter 2014 averaged 891 million cubic feet of equivalents a day. including 20,200 barrels of liquids or 14 percent of total volumes.
That production is 94 percent higher than the previous year and the liquids production jumped by 387 percent from a year earlier, he said.
Utica shale production showed 121 million cubic feet of equivalents per day in second quarter 2014. That included 7,600 barrels of oil and natural gas liquids like ethane, butane and propane.
That came from 37 horizontal wells in southeast Ohio, of which 23 were drilled this year, the company said. It expects to add 14 more Utica wells later this year. It has five rigs working in Ohio.
The liquids accounted for 47 percent of the Utica production with natural gas accounting for the remaining 53 percent, officials said.
The company has leased 120,000 acres in Ohio. It added 35,000 acres this year for $239 million.
Antero is well positioned to tap into the gas-only areas of the Utica shale next, company officials said.
It has 175,000 acres in that area in Ohio, West Virginia and southwest Pennsylvania. It intends to drill its first gas-only well in northern West Virginia later this year.
It has 15 rigs in the Marcellus shale where it has drilled 70 wells in 2014.
Antero is well positioned to ship its natural gas and liquids to markets on the Gulf Coast, Midwest, Appalachia and the East Coast, said Glen C. Warren, president and chief financial officer.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.