10th Aug 2018 09:55
LONDON (Alliance News) - Diversified Gas & Oil PLC on Friday said it is on track to meet market forecasts for 2018, as it progressed on Appalachian basin assets integration and launched a new decommissioning management department.
The gas & oil producer said integration of its Appalachian basin assets, acquired in June from EQT Corp for USD575 million, is progressing as planned.
Diversified Gas & Oil also confirmed that it expects the results for 2018 to be in line with current market forecasts.
During the period, the company said it created a department to manage its routine decommissioning programs with regulators within the US states in which it operates.
In Ohio, the company has a formal five-year agreement to plug up to 18 wells per year. In Pennsylvania, Diversified Gas & Oil said it continues to engage in productive conversations with the Department of Environmental Protection and expects to reach a resolution in the near future.
The company budgets annually for the number of wells it expects to plug, but when no formal agreements exist, it estimates the number of wells it will plug based on need or operating constraints.
Diversified Gas & Oil's average per-well decommissioning cost for year-to-date totals USD20,600, which the company expects to trend lower as it continues to reduce reliance on third-party contractors and increases the utilization of its internal resources.
Looking, ahead, the company said it does not expect to increase its planned plugging activities.
Shares in Diversified Gas & Oil were trading 0.5% higher on Friday at 107.00 pence each.
The company expects to announce its interim results on or before September 12.
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