Exco ordered to produce documents

The Securities and Exchange Commission has sent a subpoena to Exco Resources demanding that they hand over documents, which prove actual well production and reserve estimates.

Exco said the SEC requested "certain information from Jan. 1, 2008, through the present pertaining to our proved developed producing shale gas wells and reserve estimates."

"The SEC stated that this investigation is a fact-finding inquiry. We understand that a number of other shale gas producers have received similar subpoenas from the SEC."

This has all come about after a series of articles, ‘Drilling Down’, were published in the New York Times, which appeared to show that shale gas companies have overstated the ‘shale gas boom’ and have made exaggerated claims about reserves and the financial viability of projects.

The report has also triggered extensive water testing in Pennsylvania and has led to the Energy Information Administration being called in front of the US House of Representatives to explain themselves, and to testify to the US Senate as well to prove they have not overstated shale reserves.

However, the author has come under sustained attack himself for the sources he has used and his article has been denounced in some quarters as mere ‘sensationalism’.

Whatever the facts are though, the article's claims have knocked public confidence and must now be properly followed up.

Read the article online at: https://www.worldpipelines.com/business-news/09082011/exco_ordered_to_produce_documents-/