Antero reduces production estimates

Where are the areas Antero is talking about in this article?  A 30% decrease in potential is quite significant.  Were they just looking for money from investors when releasing the initial estimates?

http://www.bizjournals.com/columbus/blog/2014/04/antero-resources-s...

Antero Resources Corp. has downgraded its production estimates for two sections of its Utica shale acreage by more than 30 percent each.

However, overall production for the Denver-based oil and gas producer is up 105 percent compared with the same time last year.

Antero (NYSE:AR)  said in its update that it expects some of its Utica acreage to produce 31 percent less natural gas than previously predicted. Meanwhile, it downgraded another area’s output by 34 percent. (Wall Street  reacted badly.)

The company said the 34 percent zone has “seen some encouraging early results,” but there is still uncertainty because of the limited amount of wells and production history there.

Antero’s oil and gas wells are located in the Utica and Marcellus shale regions of Ohio, Pennsylvania and West Virginia. Although it has lowered some of its expectations for the Utica, it still estimates producing 783 to 787 millions of cubic feet per day of natural gas, up 105 percent from 2013’s first quarter and up 16 percent from the previous quarter.

Last month, Antero made its intentions to invest in the area known when it  committed 30,000 barrels of ethane daily to a West Virginia ethane cracker plant.

Antero operates five rigs and 21 producing wells in the Utica shale, and 108,000 acres in the region’s dry gas area and 128,000 dry-gas acres.

Views: 2039

▶ Reply to This

Replies to This Discussion

Permalink Reply by searcherone on April 14, 2014 at 1:43pm

IMHO it is necessary to go way beyond this article and read the press release from Antero that talks about going from four divisions of btu numbers on the Utica wells to five divisions.  The 30% decline is only in a specific category of btus not an overall 30% decline in Utica production.   One of the hot links in the article "said in its update" will get you to the press release. 

Okay fellas tell me if I am wrong in my statements here. 

Permalink Reply by Z3z528 on April 15, 2014 at 1:04am
From my understanding they seem to be doing well. They have exceeded expectations. Looks good to me from this press release
http://antero.q4web.com/investors-relations/press-releases/press-re...
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 15, 2014 at 2:11am

Antero--unlike most energy companies--seems to care about making accurate forecasts of production potential.  Take it as a good sign that they have now twice revised down EURs as it indicates to me a willingness to be honest with their shareholders.

Permalink Reply by catt on April 15, 2014 at 3:16am

Do you think this will bring their stock price down? I haven't check it in a few days.

Permalink Reply by Z3z528 on April 15, 2014 at 4:11am
Their stock has been down a touch running a touch under $60. I think they are just building everything up and will explode once all is in place. Could be $80 stock by the end of the year. IMO
Permalink Reply by Greg B on April 15, 2014 at 1:12pm

They are still very actively drilling so they must still believe in it.

Map of Antero wells classified as "drilling" as of April 12, 2014 O.... 

Courtesy Utica Shale Blog

Permalink Reply by scott peterson on April 15, 2014 at 2:01pm

Stock is steady at 60 ish

Permalink Reply by The Hiker on April 15, 2014 at 2:39pm

Greg:   I'm not sure whose wells they are, but they sure aren't Antero's.   The Township and County names are OK, but the positions and well names are all wrong.

Antero has just admitted what everyone already knows; the oil is hard to extract.   The wells in what they now term the "Condensate" and "Highly Rich Gas/Condensate" windows, although lacking in condensate, are still great gas producers with modest NGL's.  As usual, Wall Street's emotions got the best of them. 

Permalink Reply by catt on April 16, 2014 at 3:12am

Yes, that map is incorrect on the well locations and names. But hopefully Antero is happy with the gas they are getting out of the Utica! After all they have signed several contracts to provide a lot of it!

Permalink Reply by Private KeepOut on April 16, 2014 at 11:58am

Greg, if you want a more accurate picture of where Antero's wells are located then click the link below. Zoom in to Noble County, Seneca Twp/Beaver Twp and Monroe County.....you'll see exactly what's producing and what is currently being drilled. 

https://gis.ohiodnr.gov/website/dog/oilgasviewer/

Permalink Reply by Carl Krebsbach on April 17, 2014 at 8:28am

Also check out the map at this link.  It appears to be accurate.  Click on the map for a larger view and then click filter and select "antero", then filter again and select "status" and then check the various status boxes as desired.

http://uticashalemaps.com/

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service