CNX Resources Sells Its Conventional Wells in PA, OH, WV for $85M

We spotted an announcement by Diversified Gas & Oil that they have just cut a deal with two different companies–Alliance Petroleum and CNX Resources–to purchase conventional well assets from both companies for a combined price of $180 million. Alliance, based in Akron, OH, has drilled and maintained conventional oil and gas wells in the Appalachian region since 1985. While that part of the story is of passing interest, the more interesting part (for us) is Diversified’s purchase of CNX’s conventional (non-shale) wells in PA, OH and WV. This deal echos a similar deal done by Cabot Oil & Gas last summer when they sold all of their conventional wells in Appalachia (primarily in WV) to Carbon Natural Gas Company for $21.5 million (see Carbon Natural Gas Buys Cabot’s Conventional Wells in WV-OH-VA). The CNX deal with Diversified is for $85 million. Is this now a bona fide trend–shale companies shedding their portfolio of conventional assets? Perhaps! Below is the Diversified announcement…

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