Murray Energy parts with Utica Shale assets for $63.6M
Thursday, November 10, 2016
Murray Energy Corporation closed out October by unloading 5,900 acres of its Utica Shale natural gas holdings in Belmont and Monroe Counties in Eastern Ohio with a price tag of $63.6 million, according to a Murray Energy Corporation press release.
Murray Energy will receive three different payments — $48.6 million when the deal closes, one payment of $7.5 million in 2017 and one payment of $7.5 million in 2018.
The selling price works out to roughly $10,800 per acre.
Murray will use the money from the sale to reduce its current debt.
Learn more: Satellite Press Releases > Murray Energy Corporation Agrees to Sell Utica Shale Reserves in Eastern Ohio for $63.6 Million
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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.