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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.
The company declared a first-quarter dividend of 4.00 cents a share.
At 8:02am: (LON:DGOC) Diversified Gas Oil PLC share price was 0p at 112p