Diversified Gas & Oil purchases Ohio wells for $3.1M
Friday, December 22, 2017
Diversified Gas & Oil has reached a $3.1 million agreement to buy oil and natural gas wells and pipelines in Ohio from NGO Development Corp., according to The Columbus Dispatch. NGO Development Corp. is a subsidiary of the Energy Cooperative, a rural-electric cooperative utility based in Newark.
In the deal, Diversified Gas & Oil has acquired about 550 wells in Coshocton County and six other counties, including Fairfield and Licking. The wells acquired are conventional wells, which have smaller outputs than horizontal shale wells.
The sale closed on Nov. 30. NGO Development is using the proceeds to pay down debt.
Learn more: The Columbus Dispatch > Newark-based energy co-op sells 550 oil and gas wells
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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.