Seneca Resources to partner with investment firm for Marcellus wells
Saturday, December 5, 2015
Pittsburgh Tribune-Review reports that Seneca Resources, one of Pennsylvania’s largest gas producers, has announced a joint partnership with IOG Capital.
The partnership will develop between 42 and 80 new wells in three northern counties of Pennsylvania: Elk, McKean and Cameron. IOG Capital will provide Seneca with up to $380 million. IOG will receive close to 74 percent revenue on the first 42 wells.
Like other producers, Seneca has cut back on production as a result of the industry downturn.
Via: Pittsburgh Tribune-Review > Seneca Resources joins with IOG Capital to maintain Marcellus activity
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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.