Recently, EQT Corporation entered into an agreement to sell 2.5 million non-core, net acres in Southern Appalachia, including Kentucky, but company officials said as part of the sale, local employees will be transferred to the new buyers, Diversified Gas and Oil PLC.
A press release from the company said the areas, located in Southern Appalachia, will be sold to Diversified Gas and Oil PLC, for $575 million cash. The transaction relieves EQT of approximately $200 million of plugging and other liabilities associated with the assets, the release said.
As part of the sale, EQT said, the transaction includes eight EQT field locations, as well as the transfer of approximately 250 employees who work in or support production, pipeline, compression and measurement operations.
When asked about local employees being included in the transfer to Diversified, EQT officials said “all local employees there will be transferring to Diversified Gas and Oil as part of of EQT’s sale of its non-core Huron assets.”
EQT will retain the deep drilling rights across the acreage. The transaction is subject to customary closing conditions and is expected to close in late July 2018. Proceeds from the sale will be used to reduce EQT’s net-debt. Officials with the company said this week, they expect Kentucky locations to be closed by the end of the month.
With the announcement of the sale, according to the company, EQT will provide assets to Diversified, including;
• approximately 2.5 million non-core, net acres in Kentucky, Virginia and southern West Virginia —
with a 92 percent net revenue interest,
• approximately 12,000 wells with current net production of approximately 200 MMcfe per day,
• 1.6 Tcfe total net proved developed reserves, and
• 6,400 miles of low-pressure gathering lines and 59 compression stations.