March 23, 2011 / 10:33 PM / 9 years ago

RPT-Mexico reports first output from shale gas well

(Repeats with new story number)

MEXICO CITY, March 23 (Reuters) - Mexico’s state oil monopoly Pemex reported its first production in February from a shale gas well, the company said on Wednesday.

The well is in the northern state of Coahuila, near the border with Texas, and can extract 2.9 million cubic feet per day, Pemex [PEMX.UL] said in a statement.

“Pemex has drilled ten exploratory wells in areas likely to contain oil as gas,” and plans repairs on existing wells in Coahuila, the statement said.

Mexican natural gas production is concentrated in the Burgos basin in the northeast of the country and offshore in the Gulf of Mexico.

Mexico also imports gas to meet domestic demand. Coahuila state is not a traditional oil and gas production area.

Shale gas is an unconventional source of natural gas that has become in recent years the fastest growing source of new natural gas supplies in the United States.

The new supplies have overturned assumptions that the United States would require increasingly large imports of liquefied natural gas in the coming years to meet domestic demand.

Shale gas production has been controversial, and opponents claim it pollutes ground water sources. (Reporting by Mica Rosenberg)

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