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Diversified Gas & Oil said it had entered into binding agreements to acquire two separate packages of natural gas gathering systems in Pennsylvania and West Virginia for a total of $7.5m.
The assets were purchased from Dominion Gathering and Processing and Equitrans and comprised approximately 1,700 miles of low-pressure wet and dry gas gathering pipelines together with compressors, measurement stations and related facilities and equipment, the company said.
Along with the assets, the company expected to hire several midstream employees who, with their previous experience operating the system, would be instrumental in efficiently integrating and operating these assets alongside the company's existing midstream assets and team.
'The assets currently moved approximately 109,000 MMBtu of natural gas per day, of which DGO currently produces approximately 60% with third parties producing the remaining 40% of the throughput volumes,' the company said.
'As with the company's existing approximately 10,500-mile southern midstream system, the assets hold strategic importance and will enhance DGO's margins,' it added.
At 8:13am: (LON:DGOC) Diversified Gas Oil Plc share price was -1.05p at 100.45p