Shell to sell Pennsylvania shale assets to National Fuel
Wednesday, May 6, 2020
National Fuel Gas Company announced earlier this week it has entered into a purchase and sale agreement with a subsidiary of Royal Dutch Shell to acquire upstream and midstream gathering assets in Pennsylvania, according to Market Watch.
The total consideration for the deal is approximately $541 million, minus an estimated $41 million in closing adjustments.
The deal is expected to be finalized by July 31, with an effective date of Jan. 1, according to National Fuel.
National Fuel will acquire over 200,000 net acres in Tioga County, with net proved developed natural-gas reserves of approximately 710 Bcf.
Learn more: Market Watch > National Fuel to buy Shell assets in Pennsylvania
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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.