March 27, 2019 / 6:41 PM / 6 months ago

RPT-Diversified Gas & Oil to buy assets in Pennsylvania, West Virginia for $400 mln

(Repeats story without changes for wider distribution)

March 27 (Reuters) - Diversified Gas & Oil Plc said on Wednesday that it had agreed to buy some producing gas assets located in Pennsylvania and West Virginia from HG Energy for about $400 million.

Diversified Gas, a U.S-based owner and operator of natural gas, natural gas liquids, oil wells as well as midstream assets, said the assets included 107 unconventional, producing gas wells with a combined net daily production of over 20,000 barrels of oil equivalent (boe).

London-listed Diversified Gas also announced a proposed placing of shares by way of accelerated bookbuild to raise not less than $225 million to fund the deal.

The wells are located close to Diversified Gas’ existing operations in the Appalachian Basin in the northeastern United States.

The company made a string of acquisitions in the Appalachian Basin last year.

The deal is expected to push up pro forma net production to more than 90,000 boepd and immediately add to per share cash flow and earnings. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shailesh Kuber)

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