(Alliance News) - Diversified Gas & Oil PLC on Thursday said it sold its non-producing assets in Monroe County, in the US state of Ohio, for USD10 million in cash.
The natural gas liquids company said the assets include three drilled-and-uncompleted wells classified as proved undeveloped wells and certain undeveloped acreage containing additional Utica drilling locations.
Diversified Gas & Oil has in September acquired these assets from EdgeMarc Energy Holdings LLC.
"Consistent with our track record of allocating value only to producing assets, and in line with our previously stated intentions to achieve maximum benefit from the non-producing assets, I am pleased to enhance the value of our recent acquisition of the 12 producing Utica wells from EdgeMarc by successfully monetising these assets," said Chief Executive Rusty Hutson.
Hutson added: "These proceeds allow us to incrementally reduce borrowings on our credit facility thereby providing liquidity for the various opportunities we routinely evaluate as we seek to continue our strategy of acquiring and optimising producing wells."
Diversified Gas & Oil shares were trading 0.8% higher in London on Thursday at 104.88 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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