Diversified Gas & Oil PLC, Birmingham, Ala., expects to close late this month on a $575 million, cash acquisition of 2.5 million net producing acres in Kentucky, West Virginia, and Virginia from EQT Corp., Pittsburgh.
The properties, which EQT considers noncore, include 12,000 wells with net production of 200 MMcfd of natural gas equivalent from net proved, developed reserves of 1.6 tcf. Average net revenue interest is 92%.
The production is 73% in Kentucky, 20% in southern West Virginia, 6% in Virginia, and 1% in northern West Virginia.
The production is about 76% gas and 24% NGL.
The deal includes 6,400 miles of low-pressure gathering line and 59 compressor stations.
EQT retains deep-drilling rights to the acreage.
Diversified assumes about $200 million in plugging and other liabilities, EQT said.
