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.
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.”