Diversified Gas & Oil PLC(AIM:DGOC) Acquisition, Placing and Readmission to Trading


Diversified Gas & Oil PLC (AIM: DGOC), a US based gas and oil producer, is pleased to confirm that it has finalised the agreement to acquire certain gas and oil assets of Titan Energy, LLC which was announced on 5 May 2017. The Acquisition, which is subject to approval by Shareholders, has been funded through a $110m Loan Facility and a Placing to raise $35m.

The Company has today published an Admission Document with details of the Acquisition and Fundraising, and expects that trading in the Company’s Shares on AIM will resume at 8.00am today.

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·      Successfully raised $35 million in heavily oversubscribed Placing

·      Transformational acquisition increases DGO’s gross oil and gas production to approximately 18,300 boepd (11,000 boepd (net*)

·      Increases Proved Developed Producing reserves to 59.4 mmboe

·      Opportunities to further reduce operating costs below $8.26 boe achieved in 2016

·      The new wells will be immediately accretive to EBITDA 

*    Net production is stated after working interest and royalty adjustments.


Robert ‘Rusty’ Hutson Jr Share Talk TV exclusive talking with Zak Mir


Commenting on the Acquisition, CEO, Rusty Hutson said:

 “We are delighted to have successfully raised the funds required to close out this transaction. We are grateful to the existing and new shareholders who participated in the Placing, and see the strong demand witnessed throughout the process as validation of our growth strategy and business model.

The impact of this acquisition is truly transformational for Diversified Gas and Oil. It cements our position as a leading conventional player in the Appalachian Basin and materially enhances our low-cost production and predictable cash flow, both of which underpin our ability to return money to shareholders in the form of a bi-annual dividend.

Our near-term focus will be on the full integration of these newly acquired assets and identification of the areas in which we believe we can reduce operating costs. We anticipate that the synergies and streamlining of our enhanced operations will enable us to lower our operating costs below the level of $8.26 boe achieved in 2016, making our operations particularly resilient in a low commodity price environment and well positioned to benefit from any price increases, especially for natural gas which represents the large majority of our production.

Our acquisition pipeline remains buoyant with compelling opportunities and the additional funds raised through the Placing, combined with the undrawn funds from our debt facility, mean we can consider these more closely and continue to execute our effective roll-up strategy of complementary assets in the Appalachian Basin.”


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