Hess, CNX to sell joint venture in Utica shale
Friday, July 6, 2018
Ascent Resources has agreed to purchase Hess’ and CNX Resources’ 50-50 joint venture in the Utica shale play in eastern Ohio for $400 million, according to Seeking Alpha.
The sale includes 39,000 net acres, 26,000 of which are underdeveloped acres. The net production of the asset to estimated to average 14,000 boe/day this year.
Hess will also retain its interests in Denmark, where it holds a 61.5 percent interest in the South Arne Field and is the operator, after offers received in a sale process did not meet its value expectations.
Learn more: Seeking Alpha > Hess, CNX Resources to sell Utica shale JV
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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.