Diversified Gas & Oil PLC (LON:DGOC) has sold its non-producing assets in Monroe County, Ohio, for US$10mln.
The sold assets include three drilled and uncompleted wells classified as proved undeveloped wells as well as undeveloped acreage containing additional drilling locations.
READ: Diversified Gas & Oil completes EdgeMarc Energy asset acquisition
DGOC acquired the assets, as well as twelve gas wells, in September from EdgeMarc Energy.
The company said the sale meant the cost of its investment in the wells was now 20% lower than its US$50mln purchase price, and less than 2.5 times its projected cash flow compared to 3 times previously.
Rusty Hutson Jr, DGOC’s chief executive, said the sale was in line with the company’s strategy of “allocating value only to producing assets” and would enhance the value of the 12 producing wells.
“These proceeds [from the sale] allow us to incrementally reduce borrowings on our credit facility thereby providing liquidity for the various opportunities we routinely evaluate as we seek to continue our strategy of acquiring and optimising producing wells", he added.
In early trading on Thursday, DGOC’s shares were 1% higher at 105p.