Atlantica Centre For Energy

Petroleum group says fracking helped reduce greenhouse gas emissions

Category: News
Posted by: atlanticaenergy

Petroleum group says fracking helped reduce greenhouse gas emissions
Posted: Apr 16, 2014

Ricardo Lopez
The Los Angeles Times

Forent Energy Ltd. isn’t renewing its licence to explore for oil and gas on the Alton block in
Colchester County.

“The message is ‘not right now,’” said Forent president and chief executive officer Richard
Wade in an interview Tuesday from the company’s Calgary headquarters. Forent announced the decision in an operations update issued Tuesday.
“In light of our capital requirements on our newly acquired producing assets and potential refinements to the current regulatory environment in Nova Scotia, Forent has determined that it is not prudent to commit capital to the Alton block at this time,” the company said in its update.

“Forent will reassess its position in Nova Scotia at a future date.”

Wade said the province’s review of hydraulic fracturing, which may be required to extract hydrocarbons from the Alton block, played a role in the decision.

“That’s going to change potential operations in Nova Scotia,” he said. “This isn’t a hydraulic fracturing issue per se, it’s a business decision.”
Wade said he didn’t know when the provincial fracking review, led by Cape Breton University
president David Wheeler, would be released but suggested it might be this summer.

Energy Minister Andrew Younger said the review should be complete by summer, after which government will review the findings.

“We’ll take time to respond,” he said in an interview Tuesday.

Younger said he met with Forent officials in Calgary and found they supported the review. But he said he understood the company’s reluctance to commit the capital resources required for a three-year licence renewal while the review was underway.

“It’s a timing issue,” he said.

Wade said Forent has spent about $11 million exploring the Alton block and could resubmit an exploration licence application to the province for it or other blocks.

Forent also announced Tuesday that an exploratory well was drilled on lands it controls in Montgomery, Alta., in February. The company has also obtained regulatory approval to drill three development wells in its Twining, Alta., field.

Those wells will be tied into existing facilities to increase base production levels while reducing field operating costs.

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