Two years after Diversified Gas & Oil Plc’s on-again, off-again pursuit of Carbon Energy Corp.’s Appalachia Basin gas assets, the companies inked a deal in April for about $110 million.

Birmingham, Ala., based-Diversified also agreed to contingency payments of up to $15 million based on natural gas prices and scheduled proved developed producing (PDP) quantities, according to regulatory filings. Diversified has 45 days to conduct due diligence prior to executing the purchase agreement.

The assets fit with Diversified’s existing portfolio of conventional, low decline gas production and include acreage in West Virginia, Kentucky and Tennessee. Production in 2019 average 59,400 million cubic feet equivalent per day (Mcfe/d), of which 97% was natural gas. The agreement would add an additional 6,500 wells to Diversified’s arsenal of wells.

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