Diversified Gas & Oil plc (LON:DGOC), the US-based gas and oil producer with a focus on the Appalachian Basin, said that trading for the year ended 31 December 2017 remains in line with market expectations and prospects for 2018 look very encouraging, with the group evaluating further acquisitions.
In a pre-close trading update, the group - which listed on AIM in February 2017 - said 2017 was a year of significant growth as the company delivered all its stated objectives broadening its high-quality asset base and nearly tripling net daily production.
The firm completed a total of three acquisitions throughout the year, including the transformative acquisition of producing wells and related assets from Titan Energy that the company completed fully in October 2017.
DGOC said, having now become an established consolidator of mature, low-decline producing assets within the Appalachian Basin, it is actively evaluating complementary acquisition opportunities with confidence that it will announce further additions in 2018.
The company added that it remains committed to and maintains a strong balance sheet with total liquidity of approximately US$50mln, including cash of approximately US$15mln as at 31 December 2017, undrawn debt within its current facility of US$35mln and total net debt of less than US$60mln.
The company expects to announce its full year results to 31 December 2017 on or before 30 April 2018, and anticipates announcing a recommended final dividend to be paid in May 2018.