Diversified Gas & Oil PLC (LON:DGOC) has completed the US$112mln acquisition of a package of assets from EQT Corporation, to grow production and reserves.
Comprising some 900 net operated wells the transaction increases group production by 9,000 barrels oil equivalent (boe) and adds around 48mln boe of proved developed producing (PDP) reserves.
Additionally, the company told investors that it has now secured a commitment from Munich Re Reserves Risk Financing for a term loan financing for the acquisition.
READ: DGOC seals promotion to Main Market of London Stock Exchange
The deal is one of two growth transactions announced by DGOC recently, the other - to acquire a package of assets from Carbon Energy Corporation – is said to be advancing towards the finish of due diligence and completion.
Among the wells acquired from EQT, DGOC sees extra upside from an opportunity to restart production from up to thirteen currently shut-in wells.
"This transaction further solidifies the strong relationship we share with EQT that dates back to 2018 when we completed a US$575 million purchase of similar Appalachian assets,” Rusty Hutson, chief executive of DGOC said in a statement.
“Our teams work exceptionally well together, and we look forward to future opportunities to partner again. Today's acquisition builds on the significant momentum we've generated this year and continues to validate the large opportunity set of accretive gas and oil producing assets available in this market.
“As in the past, we now turn our attention to seamlessly integrating the assets into our existing portfolio, eager to capitalise on the embedded upside from the 13 non-producing wells by restoring them to production and further leveraging the scale and geographic density of our operation to reduce costs while also improving production from the other wells."