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Diversified Gas & Oil acquires producing wells in Ohio

“The deal is attractively priced and in line with our acquisition criteria in terms of valuation metrics and geographic proximity to our existing operational footprint"
oil and gas operations
The wells add around 220 boepd of net production

Diversified Gas & Oil PLC (LON:DGOC) has struck a deal to acquire 550 wells in central Ohio.

It is paying US$3.1mln for the portfolio which accounts for some 1.3mln cubic feet of gas or 220 barrels oil equivalent net production per day.

READ: Diversified Gas & Oil already seeing start of operational efficiencies from Titan acquisition

The company said in a statement on Friday that the transaction is immediately accretive to operating cash flows, and is consistent with its previously stated acquisition criteria.

Rusty Hutson, DGOC chief executive, said: “This bolt-on acquisition is in line with our growth strategy.  It provides yet more scale to our operations in the prolific Appalachian Basin and further enhances our production and cash flows. 

“The deal is attractively priced and in line with our acquisition criteria in terms of valuation metrics and geographic proximity to our existing operational footprint. 

“Our ability to source and execute on deals of this kind is a key differentiator and we continue to opportunistically identify additional assets that complement and grow our existing portfolio and generate the consistent and low-risk cash flows that underpin our business model."

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