Conventional producer Diversified Gas & Oil plans to expand its operations and acquire 107 horizontal natural gas wells in the Appalachian Basin, according to Kallanish Energy.

In the transaction, subsidiary DGO Corp. will get 56 wells in southwest Pennsylvania and 51 wells in West Virginia from  HG Energy Appalachia II for $400 million. The company expects to increase production by 30%.

The wells are located in the Marcellus Shale. They were developed by Noble Energy before being sold to HG Energy.

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