Harvest Oil & Gas to sell Utica Shale assets for $20.5M
Monday, July 13, 2020
Harvest Oil & Gas Corp. has announced plans to sell its Appalachian assets to an undisclosed company for $20.5 million, according to Kallanish Energy.
Although the buyer was not identified, it was revealed the buyer will pay $14.5 million in cash and a $6 million note for the assets in the Utica Shale of eastern Ohio. The deal is expected to close in August, although it will be dated July 1.
In a statement, Harvest said it intends “to evaluate the process of winding up and of returning capital to its shareholders” if this sale and any other possible asset divestitures are completed.
Learn more: Kallanish Energy > Harvest divests Utica assets for $20.5M
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
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.