Diversified Gas & Oil Plc is branching out from its conventional roots with a proposed $400 million acquisition in the Appalachian Basin from privately held HG Energy LLC.
The Birmingham, Ala.-based company, known as DGO, set out a couple years ago to build a position in the Appalachian Basin by acquiring conventional legacy wells to increase production and lower overhead.
In its latest acquisition, DGO said March 27 it expects to acquire 107 unconventional, producing gas wells close to its existing operations in Appalachia in Pennsylvania and West Virginia. The combined net production from the assets is over 20,000 barrels of oil equivalent per day.
This post appeared first on Hart Energy.