Diversified Gas & Oil (DGOC) has agreed to a formal decommissioning programme in Kentucky, providing further clarity on a simmering source of concern for investors in the Appalachia-based producer.
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The five-year deal requires DGOC to complete an assessment of its 7,500 wells in the state by 30 June, plug 25 non-producing wells by December, and a further 20 wells a year between 2020 and 2023. The company can also return to production up to 30 wells a year, and has agreed to post a $1.5m (£1.15m) bond while it upholds its end of the agreement.
