logo-loader
viewDiversified Gas & Oil PLC

Diversified Gas & Oil completes US$575mln acquisition, more than doubling production

“Completing a transaction of this size further increases DGO's visibility of the preferred and capable purchaser of similar assets.”

oil and gas operations
Daily production now rises above 60,000 boepd

Diversified Gas & Oil plc (LON:DGOC) this morning confirmed the completion of its latest transformational acquisition, buying producing wells and midstream infrastructure in the Appalachian Basin.

The US$575mln deal more than doubles the group’s output, daily production rates are set to increase by 115% to over 60,000 barrels of oil equivalent per day.

READ: DGOC continues its ambitious, acquisitive strategy

It was paid for via the company’s cash resources, supported by a US$240mln equity raise, and, an expanded revolving credit facility - which runs up to US$1bn, with a current borrowing base of US$600mln.

Rusty Hutson, DGOC chief executive, said: "Delivering on our stated objectives has been a guiding principle since our admission to AIM in February 2017.

“The addition of these high-quality assets to our growing portfolio and their accretive impact on earnings are tangible results that benefit our shareholders and represent a significant milestone in the evolution of our clearly stated strategy.

“Completing a transaction of this size further increases DGO's visibility of the preferred and capable purchaser of similar assets.”

He added: “We now turn our attention to the optimisation and integration of these assets into our expanding operations.

“To help accomplish this task, I am excited to welcome to Diversified the more than 250 exceptional operations personnel who have cared for these assets for years and in many cases, for decades.”

Quick facts: Diversified Gas & Oil PLC

Price: 102 GBX

AIM:DGOC
Market: AIM
Market Cap: £670.54 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Diversified Gas & Oil PLC named herein, including the promotion by the Company of Diversified Gas & Oil PLC in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Diversified Gas & Oil boosts production by 10% in third quarter

Diversified Gas & Oil PLC (LON:DGOC) CEO Rusty Hutson tells Proactive New York that the company has flagged up third-quarter production growth of 10%, at 91,100 barrels oil equivalent per day (boepd) compared to its 2Q. Hutson says growth is being driven by its current hedge program,...

on 14/11/19

RNS

Transaction in Own Shares

3 days, 10 hours ago

Transaction in Own Shares

3 days, 20 hours ago

Transaction in Own Shares

4 days, 20 hours ago

Dividend Declaration

5 days, 20 hours ago

Transaction in Own Shares

6 days, 9 hours ago

Transaction in Own Shares

6 days, 20 hours ago

Transaction in Own Shares

1 week, 3 days ago

Transaction in Own Shares

1 week, 5 days ago

2 min read