Diversified Gas & Oil to acquire Appalachian assets

Feb. 12, 2018
Diversified Gas & Oil PLC, Birmingham, Ala., has conditionally agreed to acquire Alliance Petroleum Corp. and the conventional Appalachian assets of CNX Resources Corp. for a combined price of $180 million.

Diversified Gas & Oil PLC, Birmingham, Ala., has conditionally agreed to acquire Alliance Petroleum Corp. and the conventional Appalachian assets of CNX Resources Corp. for a combined price of $180 million.

Together, the acquisitions generate net production of 107 Mcfd of gas equivalent (17,800 boe/d), which will increase Diversified’s total net production by 175% to 170 Mcfed (28,000 boe/d). The acquisitions will increase Diversified’s total proved developed producing reserves by 220% to 173 MMboe from 55 MMboe.

Alliance and CNX’s assets are in Diversified’s existing footprint in the Appalachian basin, and are concentrated in Ohio, Pennsylvania, and West Virginia, with more than 90% of the assets in a 125-mile radius from the center of the region.

Diversified would assume operations of privately held Alliance’s conventional, natural gas-producing assets with net production of 53,000 Mcfed (8,800 boe/d). The $95-million cash transaction is expected to close on Mar. 7.

Diversified would assume operations of CNX’s conventional gas assets with a production of 54,000 Mcfed (9,000 boe/d). The $85-million cash transaction is expected to close on Mar. 31.