Eclipse to combine with Blue Ridge Mountain Resources
Tuesday, September 4, 2018
Last week, Eclipse Resources Corp. announced its intent to combine with Irving, Texas-based Blue Ridge Mountain Resources, creating one of the largest operators focused on Ohio’s Utica Shale, according to Forbes.
Seaport Global Securities valued the transaction at $345 million, giving the merger an implied enterprise value of $1.4 billion and an equity value of $908 million.
Analysts at the firm said the deal solves a lot of issues for Eclipse, including improving leverage, accelerating growth, cutting costs and adding higher quality acreage.
Learn more: Forbes > Eclipse Resources Finally Finds a Mate In Blue Ridge Mountain
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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.