Empire Energy Group could soon begin New York shale fracturing with nearing of permit issue

Empire Energy Group (ASX: EEG) is now even closer to monetising its Marcellus and Utica Shale acreage and potentially increasing its natural gas resources with the New York Department of Environmental Conservation potentially set to begin issuing permits for high volume hydraulic fracturing before mid-year.

The department has concluded a 60-day public comment period of its recommendations for shale development and production.

It will now review the comments that have been submitted before releasing the final Supplemental Generic Environmental Impact Statement and associated regulations.

The New York Department of Environmental Conservation imposed a formal suspension on oil and gas drilling using the high-volume hydraulic fracturing method in New York in December 2010.

In July last year, the State announced the suspension had ended following the release of recommendations for shale development and production.

About 85% of the Marcellus Shale, where Empire Energy holds a 220,000 gross acreage position, would be accessible to natural gas extraction under the new recommendations.

High-volume fracturing would be permitted on privately held land under rigorous and effective controls. 

Empire Energy’s Marcellus Shale acreage contains an estimated P50 gas Resource of 49.5 billion cubic feet and potential oil Resource of 70.3 million barrels.

The company also has 180,000 gross acres in the Utica Shale, which is also covered by the hydraulic fracturing review and new recommendations.

Here Empire Energy has discovered shale thicknesses of between 150 and 300 feet. The acreage has a P50 gas Resource of 5 trillion cubic feet.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24158/empire-energy-group-could-soon-begin-new-york-shale-fracturing-with-nearing-of-permit-issue--24158.html