30 April 2021 | 08:02am
StockMarketWire.com - Oil and gas company Diversified Gas & Oil said it had conditionally acquired certain Cotton Valley upstream assets and related facilities primarily in the state of Louisiana for $135 million.
The purchase and sale agreement with Indigo was for 780 net operated wells producing about 16 MBoepd.
The acquisition provided strategic entry into prolific, gas-producing Cotton Valley/Haynesville area, the company said. The acquisition will add about 50 MMBoe (~305 Bcfe) in PDP reserves,[and] DGO expects to close the transaction in the latter half of May 2021 following its customary diligence, reviews and approvals, it added.
The company also provided a first-quarter trading update, with adjusted average net daily production at 105 MBoepd.