Oil and gas site owner Diversified Energy Company has bought several operating natural gas wells in East Texas for $68 million (£52.3 million).

The FTSE 250 company bought the assets from a regional operator, with the “significant” Proved Developed Production (PDP) reserve part of a larger sale in the region.

A third-party development company will also buy additional undeveloped land from the regional seller for about $19 million (£14.6 million). Diversified said it would also acquire a minority five percent stake in the land for $1 million (£800,000).

The two sales are expected to include a total of 331 wells containing approximately 69 percent of the gas volume. The company estimated its operating profit for the next twelve months at $19 million.3.5 times the purchase multiple.

“The production profile of the assets is highly complementary to the Company’s existing portfolio and operating strategy, with low annual production declines of approximately 15 percent for the next twelve months,” Diversified said in a stock exchange announcement today.

The money for the new assets is expected to be raised through the issue of new shares to the regional operator valued at around $35 million (£26.9 million) and through collateral from the newly acquired wells.

Diversified said it expects the takeover to be completed in the fourth quarter of this year and that it would have to pay a transfer fee in case of failure.

Rusty Hutson Jr., CEO of Diversified, said, “This acquisition strengthens Diversified by expanding our presence in our East Texas operating area, increasing our scale and enabling margin improvement.

“Importantly, this acquisition extends our proven track record of executing disciplined transactions at attractive valuations.

“By combining our resources with those of a development partner, we underscore our company’s ability to creatively and thoughtfully structure transactions that create value and maximize cash flow generation for shareholders.”