DENVER, April 04, 2023–(BUSINESS WIRE)–Diversified Energy’s (“Diversified”) (LSE: DEC) recently purchased Tanos Energy received high ratings from the Project Canary Low Methane Verified Attribute and environmental risk assessment (TrustWell) independent verification system on the East Texas producing assets, Project Canary announced today. The rating reflects the Tanos management team and its equity backer Quantum Energy Partners’ commitment to operational excellence, environmental performance, and sustainable development. The Project Canary environmental risk assessment “Gold” rating confirms high operational marks across 600 quantitative and qualitative data points relevant to well construction, emergency management, emissions, and water use, per well.
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The wells, which produce approximately 75% natural gas, 19% liquids, and 5% oil, received Project Canary Gold ratings, and each earned the Low Methane Verified Attribute with a methane intensity below 0.2%. Furthermore, the wells utilize installed Project Canary continuous emissions monitors on the majority of pads, with additional monitoring support by Qube, to supplement earning the Low Methane Verified Attribute. The low methane intensity and Gold rating enable Diversified Energy to access Responsibly Sourced Gas (RSG) markets. Diversified Energy is optimistic about these assets, having been proven for their low-methane performance and low-risk attributes.
“We built our business on the premise of being responsible stewards of existing natural gas and oil assets, so we value the Project Canary recognition,” said Rusty Hutson, Jr., CEO at Diversified Energy. “The ‘Gold’ designation complements our already strong ESG actions, including the OGMP 2.0 Gold Standard, further highlighting our commitment to transparency and validating the important work we’re doing to responsibly produce natural gas.”
“The Tanos management team understood that a strong focus on ESG implementation matters to the market. They worked diligently to prove out their commitment to operational excellence and ESG,” said Keila Diamond, Managing Director and Head of ESG at Quantum Energy Partners, one of the largest private equity firms focused on the energy sector. “Prioritizing sustainability alongside a disciplined approach to asset development made this particular acreage with high environmental marks attractive for acquisition.”
“Buyer and investor expectations of gas producers have shifted – spreadsheet estimates are no longer good enough. The market demands measurement,” Chris Romer, Co-founder and CEO of Project Canary, said. “Management teams continue to realize commercial value from demonstrating environmental performance with granular data.”
The low methane intensity rating and Gold holistic assessments enable Diversified Energy, which will maintain certification efforts, to access Low-Methane and Certified Gas markets or tokenize their molecules for a registry. Diversified recently earned additional recognition for its companywide efforts to measure and verify emissions by achieving Gold Standard Pathway designation under the U.N.’s Oil & Gas Methane Partnership 2.0 (OGMP 2.0).
ABOUT DIVERSIFIED ENERGY COMPANY PLC
Diversified Energy Company PLC is an independent energy company engaged in the production, marketing, transportation, and retirement of primarily natural gas related to its US onshore upstream and midstream assets.
ABOUT QUANTUM ENERGY PARTNERS
Founded in 1998, Quantum is a leading provider of private equity, credit, and venture capital to the global energy and energy transition industry, having managed together with its affiliates more than $21 billion in equity commitments since inception. For more information on Quantum, please visit quantumep.com.
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Contacts
MEDIA CONTACTS:
Project Canary: Diana Kaul, [email protected], (303) 332-4252
Diversified Energy: FTI Consulting US & UK, [email protected]
Quantum Energy Partners: Jon Keehner / Kate Thompson / Erik Carlson | Joele Frank, Wilkinson Brimmer Katcher | [email protected], (212) 355-4449
INVESTOR CONTACTS:
Diversified Energy: Douglas Kris, [email protected], (973) 856 2757