Diversified expands operations in Appalachian Basin
Wednesday, April 3, 2019
Conventional producer Diversified Gas & Oil plans to expand its operations and acquire 107 horizontal natural gas wells in the Appalachian Basin, according to Kallanish Energy.
In the transaction, subsidiary DGO Corp. will get 56 wells in southwest Pennsylvania and 51 wells in West Virginia from HG Energy Appalachia II for $400 million. The company expects to increase production by 30%.
The wells are located in the Marcellus Shale. They were developed by Noble Energy before being sold to HG Energy.
Learn more: Kallanish Energy > Diversified invests $400M in Appalachian Basin
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.