Chesapeake Selling More Assets in Marcellus
Monday, May 6, 2013
PITTSBURGH- Chesapeake Energy Corp. is selling roughly 99,000 acres in southwestern Pennsylvania and 10 horizontal Marcellus wells, located in Washington County, PA, to EQT Corporation for $113 million.
The acreage includes 67,000 Marcellus acres and 32,000 Utica acres.
Of the 10 wells sold, three are currently producing. The remaining seven are set to produce by the end of 2013, adding 1 billion cubic feet of sales volume.
The transaction is expected to close May 30, 2013.
This move is part of an ongoing effort to sell assets in order to reduce the company’s debt load.
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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.