DGOC.L Share News (DGOC)

(Sharecast News) - United States-based natural gas, oil well and midstream assets owner and operator Diversified Gas & Oil confirmed on Friday that it has completed the purchase of two separate natural gas gathering systems in Pennsylvania and West Virginia.
The AIM-traded firm said the assets, purchased from Dominion Gathering and Processing and Equitrans for total cash consideration of $7.7m (£6.27m) including purchase price adjustments, comprised around 1,700 miles of low-pressure wet and dry gas gathering pipelines together with compressors, measurement stations and related facilities and equipment.

Combined with the company's existing southern midstream system, Diversified said it now owned and operated around 12,000 miles of natural gas gathering and transporting pipelines across the Appalachian Basin.

"We are pleased to close on these transactions and are eager to move forward with an expeditious integration of these assets into our midstream portfolio," said Diversified Gas & Oil chief executive officer Rusty Hutson, Jr.

"The ability to control the flow of our gas while simultaneously increasing our market optionality and net cash margins represents another value enhancing transaction for the company."