EQT expands with purchase of Chevron’s Appalachian assets
Thursday, October 29, 2020
EQT Corp. strengthened its foothold as the No. 1 producer of natural gas in the United States, reaching a definitive purchase and sale agreement with Chevron USA Inc. to acquire its oil and gas assets in the Appalachian Basin, according to Kallanish Energy.
The $735 million sale includes 500 producing wells that produce about 450 million cubic feet equivalent per day with that production being 75% natural gas and 25% liquids. That production will boost EQT’s total production by about 11%.
The sale also includes 335,000 total net Marcellus Shale acres including 125,000 core net Marcellus acres, plus a stake in the Laurel Mountain Midstream pipeline system and two water systems and associated infrastructure in western Pennsylvania and West Virginia.
Learn more: Kallanish Energy > EQT buys Chevron’s Appalachian assets
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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.