Diversified Gas & Oil PLC, a US based gas and oil producer, is pleased to announce the admission of its issued share capital to trading on AIM. This follows the completion of a placing of 61,000,000 new Ordinary Shares at 65 pence per share to raise $50 million (approximately £39.7 million) (before expenses), giving the Company a market capitalisation of approximately $86.4 million (approximately £68.6 million) on Admission at the Placing Price. The funds raised will be used for the repurchase of Bonds, repayment of existing debt facilities, costs of Admission and working capital requirements of the Group.
Smith & Williamson Corporate Finance Limited is acting as nominated adviser and joint broker to the Company and Mirabaud Securities LLP is acting as lead broker.
· Established, profitable, proven and fast growing US oil and gas company
· Onshore licences in Appalachian Basin, northeastern US
· Total proved reserves of oil of approximately 2,271 mbbl (1,470 producing) and gas reserves of approximately 153,695 mcf (135,402 producing)
· Current daily gas production is running at approximately 26,000 mcfd and oil production is approximately 475 bopd
· Since incorporation in 2001, the Group has never drilled a non-producing well
· Successful track record of sourcing, financing and closing acquisitions
· Well defined growth strategy to grow production through organic and acquisitive means
· DGOC’s experienced management team and its proven ability to drive operational efficiency creates opportunities for additional value in a low commodity price cycle
· The Board intends that not less than 40 per cent of operating free cash flow will be paid to Shareholders by way of a dividend.
Rusty Hutson Jr., Chief Executive Officer of DGOC, said:
“We are delighted to be joining AIM and thank our existing and new shareholders for their support in the Placing. DGO has grown exponentially since inception in 2001 and we believe that our admission to AIM will provide the Company with a platform from which we can accelerate this growth trajectory. We offer a compelling proposition given our extensive acreage position in the Appalachian Basin, our low cost production, our proven track record for value creation and our commitment to pay a dividend to our shareholders. We have a well-defined growth strategy based on proven and low-risk operations and the opportunity for complementary acquisitions that we are uniquely positioned to execute on. We look forward to communicating on our progress as we begin our life as an AIM quoted company.”
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