The real concern, according to an analysis published yesterday by the peer-reviewed Proceedings of the National Academy of Sciences, are leaks in the steel-and-cement casings surrounding the well bore, which let gas escape before it gets to the surface, making water undrinkable and in some cases explosive.
"Where contamination occurs, it related strictly to well integrity," says a co-author of the study, who adds, "The answer is not to stop drilling. The fix is better executions on the construction of the well and improving well integrity."
The company announces three key strategic actions: It will not proceed with an expansion at its iron ore pellet operations in Keewatin, will forgo further development and construction of the carbon alloy facilities at Gary Works, and will apply for relief for U. S. Steel Canada from its creditors and will be deconsolidated from U.S. Steel's financial statements.
The estimated capital investment that would have been required to complete these projects was more than $800M; the company estimates the strategic actions will result in total charges of $550M-$600M.
Junior gold explorer Probe Mines (OTCPK:PROBF) appoints former Barrick Gold CEO Jamie Sokalsky as a director and its next non-executive chairman, where he is expected to replace Patrick Reid as chairman after the company’s annual meeting Oct. 29.
Sokalsky formally stepped down from the top job at Barrick yesterday following a management shakeup there.
Probe’s assets include the Borden gold project and Black Creek chromite deposit, both in Ontario.
The CEO of Russian potash firm Uralkali (OTC:URALL) says it has no plans to return to the sales arrangement it had with Belarus, WSJ reports.
Share prices of major potash producers in North America, Germany and Israel have rallied this year, partly on hopes of a reconciliation, but Uralkali CEO Dmitry Osipov says no talks have been held since April and none are planned.
However, potash prices have not fallen as much as some analysts had predicted following the breakup, due in part to better than anticipated demand from Brazil and China.
AT&T's attention is focused on closing the $49B deal for DirecTV, but Chief Strategy Officer John Stankey says Mexico is a fast-growing market of interest to the company, and that AT&T has the wherewithal to do other deals if opportunities arise.
Endo International (ENDP +0.9%) submits a proposal to Auxilium Pharmaceuticals (AUXL -1.6%) to acquire it for $28.10 per share in cash. The total value of the transaction would be $2.2B or a 31% premium to today's closing price.
AUXL is up 42% AH on robust volume. ENDP is up 5% AH on heavy volume.
Retrophin (RTRX +3.5%) board member Jeffrey Paley, M.D. steps down to devote more time to his medical practice. As a result, the BOD and the Audit Committee are no longer in compliance with the NASDAQ requirement of a majority of independent directors because only two of the four directors qualify as independent. The company intends to regain compliance in both areas prior to the expiration of the cure period. A search for a new independent board member is underway.
CFO Marc Panoff resigns to pursue other opportunities. He will stay on board until a replacement is hired. A search is underway.