Texas-based company drills exploratory well in NY shale

October 11, 2012

OWEGO, N.Y. (AP) - A Texas company is drilling a vertical well to explore the potential of the Marcellus Shale natural gas formation.

Carizzo Oil & Gas of Houston recently started digging its first well north of the Tioga County village of Owego.

Richard Hunter, Carizzo's vice president of investor relations, says it will determine whether the company pursues horizontal drilling.

Horizontal high volume hydraulic fracturing, or fracking, isn't permitted in New York. State regulators could make a decision whether to allow it by the end of this year.

Fracking injects millions of gallons of chemical-laced water into the ground to crack rock and release gas. Supporters point to energy supply and economic gains while opponents worry about pollution.

There are about a dozen exploratory wells in New York's share of the Marcellus.

Associated Press 2012