(Alliance News) - Diversified Gas & Oil PLC said on Tuesday it has extended an asset retirement agreement with the state of Ohio.
The agreement has been extended by five years and now expires on at the end of 2029.
The terms remain essentially the same, DGO said, with the company committing to plug 20 oil and gas wells a year, two more a year than prior. DGO has over 7,000 wells in Ohio.
The company also has agreements lasting over a decade in Kentucky, Pennsylvania, and West Virginia.
"I would like to thank the Ohio Department of Natural Resources and the Division of Oil & Gas Resources for their partnership in this extension as we seek to serve the local communities in which we operate by providing stewardship of our resources and assets to safely retire wells that have reached the end of their productive lives," said Chief Executive Rusty Hutson.
"This agreement, particularly in tandem with our existing agreements with the other states in which we operate, further strengthens our asset retirement programme, and provides clear visibility into the cash flows and operational responsibility required to deliver on our commitment to retire wells."
Shares closed 6.5% higher in London on Tuesday at a price of 75.60 pence each.
By George Collard; georgecollard@alliancenews.com
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