Diversified Energy Co., an independent energy company, recently purchased Nick’s Well Plugging (NWP), an Ohio-based private plug-in service provider.
The purchase enables Diversified to meet or exceed its commitment to remove at least 200 of its wells across Appalachia each year by 2023 and to offer its plugging services to other operators and state governments .
This will bring the number of retired Diversified teams to eight, with a ninth expected to be added by the end of the second quarter.
“This acquisition demonstrates our commitment to responsibly retire our long-lived, low-decline assets when the time is right,” said Brad Gray, executive vice president and chief operating officer of Diversified. “Asset decommissioning is an integral part of our business, and this acquisition enhances our ability to decommission wells safely and efficiently. Our investments to vertically integrate well connection expertise and equipment allow us to meet or exceed our own business goals and provide the flexibility and ability to offer services to other operators and governments. of states seeking to remove orphan wells.
Jason Nicholas and Tammy Angus, who founded NWP with their father Orville Nicholas in 2010, will join Diversified’s existing well reprocessing subsidiary, while the elder Nicholas will serve as a plugging consultant for a transition period.