Chesapeake reaches deal to sell Eagle Ford assets for $1.4 billion
Friday, January 20, 2023
Chesapeake Energy Corp. has agreed to sell its Upper Eagle Ford Assets for 1.425 billion to WildFire Energy LLC, according to Natural Gas Intelligence.
The sale includes 377,000 net acres and 1,350 wells across Chesapeake’s Brazos Valley operating area, which the company absorbed in a 2018 deal when it acquired WildHorse Resource Development Corp. for $4 billion in cash and stocks.
The sale is part of the company’s overall strategy to divest a 610,000 net acre position across the Eagle Ford in East and South Texas, shifting its focus from oil to natural gas.
Learn more: Natural Gas Intelligence > Chesapeake Narrows Lower 48 Focus by Cutting Eagle Ford Stake in $1.4B Deal
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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.