Diversified Deal to Pick Up Another 6,500 O&G Wells in WV, KY, TN
Diversified Gas & Oil (DGO) owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil)–in the Appalachian Basin. They currently have over 400 Marcellus/Utica shale wells in their portfolio too. DGO announced it has a conditional deal to buy another 6,500 conventional wells spread across West Virginia, Kentucky and Tennessee, along with a 4,700-mile gathering pipeline system located in WV. The deal, “subject to ongoing due diligence,” is for $110 million.
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Diversified Gas & Oil owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil)–in the Appalachian Basin. They currently have over 400 Marcellus/Utica shale wells in their portfolio too. When a gas or oil well quits producing, it needs to be plugged. We were aware of deals Diversified has cut with both Pennsylvania and West Virginia to plug old, non-producing wells (see 
Diversified Gas & Oil owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil). They currently have over 400 shale wells in their portfolio. Diversified has just closed on a deal to raise more money via securitization–meaning to issue securities (“notes”) based on the value of their gas wells. It will raise a reported $200 million for the company. The securitization transaction is being called “groundbreaking.”
In August MDN told you that Diversified Gas & Oil was the high (and only) bidder for Ohio Utica assets owned by EdgeMarc Energy, buying those assets out of bankruptcy court (see 
EdgeMarc Energy, headquartered in Canonsburg, PA (with 50,000 acres of Marcellus/Utica leases), filed for Chapter 11 bankruptcy in May, looking to sell all of the company’s assets (see 
Diversified Gas & Oil has been on a mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. It owns over millions of acres and tens of thousands of wells–many of them located in Pennsylvania. Last fall the PA Dept. of Environmental Protection (DEP) told Diversified it wants 1,000 of its nonproducing wells plugged in the next five years. Diversified countered it would like to plug 2,000 wells, but over the next 20 years. They ended up compromising.
The West Virginia Surface Owners’ Rights Organization (WVSORO) is making some big accusations against EQT (perhaps other drillers too) in saying that EQT, which once owned thousands of conventional oil and gas wells in the state, is selling those wells to companies that may go out of business and therefore will not be able to properly plug those wells as they reach end-of-life and no longer produce. Specifically, WVSORO mentions the recent sale by EQT of its WV conventional assets to Diversified Gas & Oil. In June, MDN brought you the exclusive news that Diversified had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see 
We’ve shared the following story a few times over the years: In 2012 MDN editor Jim Willis took a tour of several Cabot Oil & Gas well sites in Susquehanna County, PA. One of the sites was a completed well pad with four producing wells, located not far from Carter Road in Dimock (the infamous Carter Road memorialized in Gasland). As we stood on the pad, Jim’s tour guide, Bill desRosiers, made this statement: “Cabot has over 4,000 vertical gas wells in West Virginia. You see these four horizontal wells? These four wells produce more natural gas in one day than all 4,000 of those vertical wells in West Virginia.” Behold the power of Marcellus Shale! On June 19, MDN brought you the exclusive news that Diversified Gas & Oil had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see 
A group of 116 EQT production employees who live and work in Kentucky have voted to form a union to protect their jobs and benefits. It is unusual–frankly unheard of–for unions to make inroads with an exploration and production company (E&P) like EQT. Why this group and why now? The fire was lit when EQT announced it is selling its Huron Shale assets to Diversified Gas & Oil (see