Aug 14 (Reuters) - U.S.-based Diversified Energy ( DEC )

said on Friday it is in early discussions to acquire

privately held Birch Resources, as it looks to further expand

into the oil and gas-rich Permian Basin.

Bloomberg News first reported the talks on Thursday, citing

people familiar with the matter, and saying a potential all-cash

transaction would value Birch at more than $1.7 billion.

Here are some more details:

* The talks follow Diversified's March 2025 acquisition of

Maverick Natural Resources, which also had an asset base in the

Permian Basin, for $1.28 billion including debt.

* Shares of Diversified closed down more than 2% on

Thursday, after Bloomberg's reporting on the talks. The company

has a market capitalization of about $1 billion, according to

LSEG data.

* "No agreement has been reached, and there is no certainty

that any transaction will occur, nor as to the terms on which

any transaction might proceed," Diversified said in a statement.

* Birch, backed by investment firm Elliott Investment

Management, operates in the Permian Basin, the largest oilfield

in the U.S.

* The company was formed out of energy assets from the 2018

Chapter 11 bankruptcy agreement of Breitburn Energy Partners.

* Elliott did not immediately respond to a Reuters request

for comment. Birch Resources could not be immediately reached.

* Separately, Diversified and Carlyle had agreed in May to

acquire certain oil and natural gas properties in Oklahoma from

Camino Natural Resources for nearly $1.18 billion.

(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by

Mrigank Dhaniwala)