Diversified Gas & Oil Closes on Alliance Petroleum Acquisition
March 12 2018 - 10:18AM
Business Wire
Closing follows February 2018 announcement of
proposed Alliance Petroleum, CNX Resources acquisitions
Diversified Gas & Oil PLC (AIM: DGOC) (“Diversified” and the
“Company”), a U.S.-based acquirer and operator of oil and gas
producing assets, on March 6, 2018, closed a $95 million cash
purchase of Alliance Petroleum (“Alliance”).
Diversified’s acquisition of Alliance’s conventional, producing
wells, combined with the previously announced and upcoming
acquisition of similar assets from CNX Gas Company, LLC (“CNX”),
will increase the Company’s total net daily production by nearly
175 percent to approximately 170,000 Mcfe or 28,000 Boe. Similarly,
the combined acquisitions will increase Diversified’s total proved
developed producing reserves by nearly 220 percent to 173 million
Boe.
Alliance’s and CNX’s wells are geographically situated within
Diversified’s existing footprint in the Appalachian Basin, and are
concentrated in Ohio, Pennsylvania and West Virginia.
In addition to the producing wells, Diversified welcomes all of
Alliance’s full-time employees, adding 165 talented people to its
existing team. The enlarged company will continue to serve the
communities within which it operates in a responsible and equitable
manner.
“We are pleased to close on the Alliance purchase, which further
establishes Diversified as a capable consolidator of large packages
of mature producing wells. Importantly, this transaction allows us
to preserve valuable jobs in the region as we welcome to the
Diversified family the Alliance team of professionals who have
built and run a high-quality operation,” said Rusty Hutson, CEO and
founder of Diversified, and a fourth-generation Appalachian Basin
oil and gas industry veteran. “As committed stewards to our
investors, our communities and our employees, this acquisition
aligns perfectly with our existing operations and growth
strategy.”
Diversified expects to close on its $85 million cash transaction
to acquire CNX’s assets on March 30, 2018.
About Diversified Gas & Oil
Diversified Gas & Oil (AIM: DGOC) acquires and operates oil-
and gas-producing assets in the Appalachian Basin of the United
States. Diversified employs a disciplined investment strategy to
acquire conventional and unconventional low-risk wells, enhance
operations efficiently and maximize profitability for its
shareholders. Founded in 2001, Diversified operates approximately
18,000 producing wells with the highest standards of safety,
governance and transparency. For more information, visit us online
at www.diversifiedgasandoil.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20180312005779/en/
For Diversified Gas & Oil PLCNicole Wyatt,
205-588-2327nicole@markstein.co
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