A Reuters article warns that U.S. shale gas investors are “bracing” for write-downs by major drillers, particularly in the Marcellus/Utica region. The article chronicles the write-downs we already know about (EQT, CNX, Shell and Chevron) and speculates that others (like Antero and Cabot) may make announcements in the coming days. And then, in a bit of a twist, the article ends with information about BKV (Banpu Kalnin Ventures), to say (a) Banpu’s American shale assets have already been written down before they purchased them, and (b) Banpu will not do any new drilling until the price of gas recovers to at least $3.50/Mcf. They may wait a looooong time.
A Reuters article warns that U.S. shale gas investors are “bracing” for write-downs by major drillers, particularly in the Marcellus/Utica region. The article chronicles the write-downs we already know about (EQT, CNX, Shell and Chevron) and speculates that others (like Antero and Cabot) may make announcements in the coming days. And then, in a bit of a twist, the article ends with information about BKV (Banpu Kalnin Ventures), to say (a) Banpu’s American shale assets have already been written down before they purchased them, and (b) Banpu will not do any new drilling until the price of gas recovers to at least $3.50/Mcf. They may wait a looooong time.