Chesapeake Sells Eastern Pa. Marcellus Shale Properties
Monday, April 29, 2013
HOUSTON — Southwestern Energy Company is buying natural gas properties located in Pennsylvania prospective for the Marcellus Shale from Chesapeake Energy Corporation and its partners for approximately $93 million, subject to closing conditions.
Upon closing, Southwestern intends to use its revolving credit facility to finance the acquisition.
The company anticipates the acquisition, announced April 29, to close on or around May 15.
Steve Mueller, president and chief executive officer of Southwestern Energy, said the acquisition of approximately 162,000 net acres is near Southwestern’s existing position.
“The key acreage is located in Susquehanna, Wyoming, Tioga and Sullivan counties,” Mueller said.
Current net production from these properties is approximately 2 MMcf per day from 17 gross wells (1.2 net wells).
“Upon closing of this transaction, our acreage position of approximately 337,000 net acres in the Marcellus strengthens our ability to provide future double-digit production and reserve growth.”
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.