Bankruptcy court approves Rockdale Marcellus $222M asset sale to Repsol
Monday, January 3, 2022
U.S. Bankruptcy Court for the Western District of Pennsylvania approved the sale of substantially all of Rockdale Marcellus LLC’s assets to Repsol Oil & Gas USA LLC for $220 million in cash, plus the assumption of $2 million in debt owed to trade creditors, according to Bloomberg Law.
Proceeds from the sale, approved last week, would total enough to pay off all secured debt, which is estimated to be about $217 million as of January 2022, according to a declaration by Rockdale’s chief restructuring officer, John C. DiDonato.
Rockdale’s assets include 66 producing wells on 42,897 net acres in Pennsylvania, which produce about 110 Mmcf/d (million cubic feet per day).
Learn more: Bloomberg Law > Shale Driller Rockdale Marcellus’ $222 Million Asset Sale OK’d
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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.