Business
Replacement: Acq. of High-Quality East Texas Asset
Replacement: Acq. of High-Quality East Texas Asset.
About this update from Diversified Energy Company
[{"type":"text","content":"\n\nDiversified advises that the following replaces the RNS announcement headlined \"Acquisition of High-Quality East Texas Assets\" and released at 7.01am BST on August 20, 2024.\n \nThe announcement has been amended and clarified to exclude disclosure language referencing the Acquisition (as defined below) as a \"significant transaction\" for the purposes of the FCA Listing Rules. The Acquisition does not constitute a \"significant transaction\" under UKLR 7. \n \nNothing else has been amended. The full corrected version is below.\n \n \nAugust 20, 2024\n \n \n Diversified Energy Company PLC\n(\"Diversified\" or the \"Company\")\n \n Diversified Announces Joint Acquisition to Acquire Package of High-Quality East Texas Assets\n \nRepresents Second East Texas Bolt-On Addition of PDP Production in 2024 and Further Increases Scale in Central Region\n \nJoint Acquisition Partner to Directly Purchase Undeveloped Acreage\n \nDiversified Energy Company PLC (LSE:DEC; NYSE:DEC) (\"Diversified\" or the \"Company\") is pleased to announce the execution of a conditional purchase and sale agreement for the acquisition of operated natural gas properties located within eastern Texas (the \"Assets\") from a regional operator (the \"Seller\") (the \"Acquisition\"). Notably, the Assets contain a significant Proved Developed Producing (\"PDP\") component, approximately $68 million, which will be purchased by Diversified. \n \n \nConcurrently, an active third-party development company with operations in the area will purchase an additional amount of undeveloped acreage with a value of approximately $19 million, the majority of which will be purchased by the third-party development company, with Diversified maintaining only a minority 5% interest for $1 million in consideration. The total purchase price to the Seller, inclusive of both the PDP assets and undeveloped acreage is approximately $87 million before customary purchase price adjustments. The Development company will pay cash consideration of approximately $18 million to directly to the Seller at the closing of the Acquisition.\n \nThe consideration for the acquisition of the Assets to be paid by Diversified will be funded through a combination of the issuance of new US-dollar denominated ord...