Shale Gas Is Back With This $2 Billion Acquisition
A nearly $2 billion natural gas deal may signal a sign that companies are interested in gas drilling once more when a long downturn.
Gulfport Energy announced plans to issue new shares in order to finance a $1.85 billion acquisition of acreage in Oklahoma’s SCOOP basin. the scoop has emerged as arguably the next most exciting shale play, with acreage still largely undeveloped.
The Marcellus and Utica Shales in Pennsylvania and Ohio are home to the bulk of the shale gas revolution, though oklahoma has seen years of shale gas drilling as well. currently with the Marcellus having been poked with tens of thousands of wells, natural gas drillers are moving on to greener pastures. The rig count outside of the handful of major shale basins is currently at its highest level in almost a year.
Adding fuel to the fire is the recent rise in natural gas costs, with Henry Hub currently up to concerning $3.60/MMBtu. natural gas production peaked earlier this year, dipping by concerning 5 %. the sector has shown some recent signs of life but, with provides tightening and demand continuing to rise. The record levels of natural gas inventories are starting to come down to additional reasonable levels, though they remain elevated. cold weather across the country has additional a bit of bullishness to the fuel in recent weeks.