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US: Diversified Gas & Oil completes EdgeMarc acquisition
19 Sep 2019
AIM-listed Diversified Gas & Oil, the U.S. based owner and operator of natural gas, natural gas liquids and oil wells as well as midstream assets, has confirmed that further to the announcements made by the Company on 25 July 2019 and 29 August 2019, on 18 September 2019 it completed the purchase of certain assets from EdgeMarc Energy Holdings and certain of its subsidiaries. The conditions of the Acquisition have been met in full.
The consideration for the Acquisition was $50 million (or approx. $48 million in cash after customary purchase price adjustments), funded from existing debt facilities, to acquire (a) 12 producing unconventional Utica natural gas wells and related facilities in Monroe and Washington counties within the State of Ohio, (b) three drilled but uncompleted wells ('DUCs'), and (c) undeveloped land containing deep Utica rights. The Company also paid approx. $1.6 million (net of hedge cash settlements from the 1 August 2019 effective date) for EdgeMarc's natural gas financial hedge portfolio.
Commenting on the completion of the Acquisition, CEO, Rusty Hutson, Jr., said:
'We are pleased to close this acquisition just three weeks after a successful bid. We now turn our attention to fully integrating these accretive assets and to determining the optimal way to realise additional value for the acquired DUCs and undrilled locations.'
Source: Diversified Oil & Gas