Bloomberg: Chesapeake enlists Evercore to sell Eagle Ford assets
Wednesday, August 31, 2022
Chesapeake Energy has enlisted Evercore to sell its Eagle Ford Shale assets in an auction expected to be held after Labor Day, according to Bloomberg.
The company’s oil-rich Eagle Ford assets include 610 net acres with a net production of 88,000 boe per day at the end of the second quarter.
The sales are expected to generate billions of dollars, which will be used to further Chesapeake’s plans to return capital to investors and buy back $670 million of common shares.
The company intends to shift its focus from oil production and focus on its assets in the natural-gas-rich Haynesville Shale in Louisiana and Marcellus Shale in Pennsylvania.
Learn more: Seeking Alpha > Chesapeake Energy taps Evercore to sell Eagle Ford assets — Bloomberg
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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.