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Diversified Gas & Oil closes bookbuild to raise US$85mln for new acquisitions

"The completion of this fundraise, against the challenging economic and industry backdrop, reflects the unique proposition of DGO," said chief executive Rusty Hutson

Diversified Gas & Oil PLC - Diversified Gas & Oil closes bookbuild to raise US$85mln for new acquisitions

Diversified Gas & Oil PLC (LON:DGOC) confirmed that it has conditionally raised gross proceeds of US$85.8 mln to support an acquisition spree in the United States.

DGOC, in an after-hours statement on Monday, announced its latest acquisition building on a deal unveiled in April. Together the transactions represent around 18,000 barrels oil equivalent per day (boepd), equating to 20% of DGOC’s output in 2019, and come with a combined price tag of US$235mln.

READ: DGOC strikes second coronavirus lockdown acquisition

Part of the funding comes from the share placing. The remainder is covered by long-term loan notes. DGOC this morning reported it will sell some 64.28mln new shares each priced at 108p, just a 1.6% discount to yesterday’s average mid-market price.

The shares are being sold to existing and new shareholders. The company said it consulted with major shareholders prior to the funding and it has respected the principles of pre-emption as far as possible through the share allocation process.

"The completion of this fundraise, against the challenging economic and industry backdrop, reflects the unique proposition of DGO and the support that we have for our continued growth and value creation ambitions,” Rusty Hutson, DGOC chief executive said in a statement.

“Our investment story is centered on low-risk cash flow and a commitment to shareholder returns, and our business model ensures we are able to deliver both, even in the current low commodity price environment.”

Quick facts: Diversified Gas & Oil PLC

Price: 109 GBX

LSE:DGOC
Market: LSE
Market Cap: £771.04 m
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Diversified Gas & Oil raise dividend 'because we can' after 'very good quarter'

Diversified Gas & Oil PLC's (LON:DGOC) Chief Executive Rusty Hutson talks to Proactive London about their third quarter results which Hutson summarises as 'a very good quarter'. Their decision to raise the dividend was 'because we can, after generating a lot of cash flow'. And production...

on 29/10/20

2 min read