Diversified looks to expand new focus area with Barnett asset deal

Diversified Energy Co. PLC has conditionally agreed to acquire certain Barnett shale upstream assets from Blackbeard Operating LLC, Midland, Tex., for a gross purchase price of $180 million.

Diligence work is continuing prior to confirming final terms. Currently, Diversified expects to close the deal in June.

The deal would offer Blackbeard entry into the Barnett shale and an extension of the company's presence in its newly identified central regional focus area where it aims to build scale, it said in a May 29 release.

The deal would add 96 MMcfed (82% natural gas, 17% NGL, 1% oil) of net production, 840 net wells (98% operated), and an average working interest of 65% on 123,000 net acres.

The conditional agreement comes on the heels of the close of its acquisition of certain Cotton Valley upstream assets from Indigo Minerals LLC also in its new focus area (OGJ Online, May 4, 2021).

Through both acquisitions, Diversified would hold over 300,000 net acres in its Central RFA, generating 192 MMcfed of net production.