Denver, Colorado (PRWEB) May 25, 2011
Inflection Energy LLC (“Inflection”), a privately held Denver-based natural gas exploration and production company with assets in the Marcellus and Utica Shales, today announced that it has leased approximately 3,000 additional acres in Broome County, New York, bringing the total under its control in the state to approximately 15,000 acres. The company is also actively developing natural gas resources on more than 6,000 acres in Pennsylvania.
Mark Sexton, Inflection’s CEO, stated, “We are pleased to move forward with this transaction, which will benefit all of the landowners who participated. We are cautiously optimistic that the regulatory process will come to a close in a manner that will allow this property to be developed. At the same time, we remain concerned about the amount of time that it is taking for New York State to establish standards for the development of shale resources in New York State.” The Inflection investment in these properties represented approximately $8 million in signing bonuses. Under the lease terms, the landowners agreed to share in the risk of the current regulatory environment, by allowing the leases to be extended to accommodate the current moratorium on drilling and completing shale gas wells. Sexton indicated that this transaction is symbolic of the type of investment that will be made in New York State if the industry is allowed to develop the shale resources under the high standards being developed by the New York Department of Environmental Conservation. “The landowners and communities in New York’s Southern Tier will finally start to realize the economic benefits that Pennsylvanians have been enjoying for several years now, if industry is allowed to move forward with environmentally responsible development. The real economic value in New York State will be recognized and appreciated when the natural gas resources in New York State are developed and producing”, Sexton added.
Sexton also commented that “Inflection will be developing this acreage in accordance with high environmental standards, which serves the industry, the landowners and the communities and people of New York State” and noted that “we can reassure our landowners that the industry methods we utilize will absolutely conform to best practices, and will illustrate that hydraulic fracture stimulation of the Marcellus shale will not adversely affect anyone’s water wells or water supply. We look forward to operating under the new rules that the DEC will produce, which we expect to be the toughest regulations in the country, and we have committed to our shareholders and landowners that we will meet or exceed those standards.”
James Roberts, one of the leaders of the coalition that concluded this transaction with Inflection, stated: “This has been a long road getting here, but it could have not happened without the help of Mark Sexton, the Inflection Energy staff as well as the West law Firm. I and Mark Springsteen, who has worked very closely with me on this transaction, truly believe this a shot in the arm for Broome County and New York State.” Speaking for the group of landowners who helped with this transaction, James Roberts stated: "All of the landowners who have stuck it out with us truly believe this is just a new beginning for our area. We have put a lot of long hours in this transaction and Inflection Energy is one the most professional gas companies to deal with by far. It is my hope, as well as the hope of others, that this transaction is a stepping stone for many others to come. To me, we are setting the standards in this state for a very bright future and good things to come to our community and New York State!"
About Inflection Energy LLC
Denver-based and privately held Inflection Energy LLC is focused on the exploration and development of natural gas opportunities in the Appalachian region. We are committed to protecting our operating environment and in minimizing surface disturbance when conducting our natural gas activities. We meet or exceed best-in-class standards when drilling and completing our wells, and highly value our relationships with landowners, communities, and governments, who are our partners in the efficient and orderly development of their natural resources.