Anyone have information about or experience with Diversified Gas & Oil and how they operate? I have read a recent article about their purchasing conventional wells from Alliance Petroleum and CNX Resources in Ohio, WV and Pennsylvania. As a CNX landowner with wells in PA I have concerns. Do they continue to operate these wells? How do they pay royalties? Do they spend money to maintain the wells? How is the lease designed for deep gas rights? Are they fair to work with as a landowner? Do they have regional offices in Central PA? Anyone with insights and comments is appreciated. Thank you!!
Atlas was a large scale oil and gas operator dating back to the late 1990s. They purchased Viking Resources and took over that shallow production, and then was purchased by Chevron in 2011 because they operated the shallow rights on a lot of Chevron's Mar/Uti acreage.
Atlas then changed its name to Titan Energy after exiting bankruptcy and sold to Diversified in 2017. Diversified has been building an inventory of shallow production for a few years now in the basin. Two or three years ago, they purchased Texas Keystone's shallow assets in West Virginia, and obviously closed on the Alliance Petroleum and CNX deals last month.
In most cases, their shallow production will be holding someone's deep rights. It's a matter of who and how important that particular area is to that deep rights operator. However, in an instance where Diversified is the shallow operator and there has not been a deep rights reservation, they would be inclined to preserve those leaseholds and find a Mar/Uti operator to sell those rights to.
Any news when or how landowners will be notified of the ownership transfer? What type of new documents are provided...a new lease?
A transfer of ownership does not result in a new lease. Generally just a letter or updated DOI, if anything. If acquiring an asset vacated an existing lease, company's wouldn't acquire assets.
Following--I am in Northcentral PA (Tioga County)