LONDON (ShareCast) - (Sharecast News) - Diversified Gas and Oil has agreed to plug, return to production or dispose of at least 50 gas and oil wells per year in the US state of West Virginia over the next 15 years.
Following DGOC's acquisition of Core Appalachia in October, the company now owns and operates roughly 60,000 gas and oil wells in the Appalachian region - 17,000 of which approximately were located in the state of West Virginia.

DGOC's agreement with the West Virginia Department of Environmental Protection will see the AIM-listed group plug 30 gas and oil wells across West Virginia during 2019 following an assessment of its non-producing assets, then step up the rate from 2020 through until 2034.

A $3m bond agreement will also be posted with the state - which will be released after the group fulfils the terms of the agreement.

Chief executive Rusty Hutson, said: "West Virginia has fostered a healthy environment for both Diversified and the natural gas industry."

"We are pleased to have a large portion of our company operating in West Virginia, and we are very proud that a significant number of our employees call West Virginia home."

As of 1030 GMT, DGOC shares were up 0.95% at 117.10p.

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