16th Oct 2025 12:59
(Alliance News) - Diversified Energy Co on Thursday said it would invest USD70 million in West Virginia as part of an agreement to establish an assurance fund dedicated to retiring oil and gas wells.
The Birmingham, Alabama-based oil and gas production company said the 'Mountain State Plugging Fund' ensures that Diversified’s oil and natural gas wells in West Virginia will be retired at no cost to taxpayers.
The fund represents a USD70 million commitment over 20 years from Diversified Energy to West Virginia, the company said.
In conjunction, Diversified Energy will bolster its investment in its wholly owned subsidiary, Next LVL Energy, to grow its well retirement capacity within the Appalachian Basin.
"This fund sets a new standard of financial assurance for the industry and reflects our shared vision for responsible energy development in West Virginia," commented Diversified Energy Chief Executive Rusty Hutson.
West Virgina Governor Patrick Morrisey said the initiative sends a clear message: "West Virginia can both be a leader in energy dominance and in environmental solutions."
Well plugging is the process of permanently sealing a wellbore, typically one drilled for oil or gas, by filling it with materials like cement to prevent the migration of fluids and gases.
It helps stop methane and other harmful gases from leaking and polluting the air and prevents oil, gas, and other fluids from contaminating freshwater supplies.
Diversified Energy said the initial USD70 million investment across the initial 20-year period, is expected to grow over time to USD650 million of financial protection to West Virginia.
Diversified Energy has agreed to retire at least 1,500 wells in the first 20 years as the fund is established, increasing to a goal of 250 wells annually.
Shares in Diversified Energy were down 0.6% at 961.00 pence each in London early Thursday afternoon.
At the start of October, the firm announced it plans to move its primary listing to the New York Stock Exchange, while retaining a secondary listing on the London Stock Exchange.
It noted that its executive management team and operational headquarters are based in the US, all of its employees live in the US, and all assets are located in the US.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Diversified Energy