Diversified Gas & Oil PLC Acquisition (0717Y)
01 December 2017 - 6:01PM
UK Regulatory
TIDMDGOC
RNS Number : 0717Y
Diversified Gas & Oil PLC
01 December 2017
1 December 2017
Diversified Gas & Oil PLC
("Diversified" or the "Company")
Acquisition of 550 Wells in Central Ohio
Diversified Gas & Oil PLC (AIM: DGOC), an Appalachian Basin
focused producer of gas and oil, today announces the acquisition of
550 wells in Central Ohio from NGO Development Corporation, Inc.
(the "Acquisition"). The Acquisition purchase price is $3.1 million
met in cash from the Company's existing resources. Net production
of the acquired wells is approximately 1,300 mcfe/d or 220 boe/d.
The Acquisition is immediately accretive to operating cash flows
and is consistent with the Company's prior acquisition
criteria.
Diversified will assume immediate control of operations of the
wells, which are located in close proximity to existing
operations.
Commenting on the acquisition, CEO Rusty Hutson Jr said:
"This bolt-on acquisition is in line with our growth strategy.
It provides yet more scale to our operations in the prolific
Appalachian Basin and further enhances our production and cash
flows. The deal is attractively priced and in line with our
acquisition criteria in terms of valuation metrics and geographic
proximity to our existing operational footprint. Our ability to
source and execute on deals of this kind is a key differentiator
and we continue to opportunistically identify additional assets
that complement and grow our existing portfolio and generate the
consistent and low-risk cash flows that underpin our business
model."
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
Diversified Gas & Oil PLC
Rusty Hutson Jr., Chief Executive
Officer
Brad Gray, Finance Director and
Chief Operating Officer
Eric Williams, Chief Financial
Officer + 1 (205) 408
www.diversifiedgasandoil.com 0909
Smith & Williamson Corporate
Finance Limited
(Nominated Adviser & Joint Broker)
Russell Cook
Katy Birkin +44 20 7131 4000
Mirabaud Securities LLP (Joint
Broker)
Peter Krens
Edward Haig-Thomas +44 20 3167 7221
Buchanan (Financial Public Relations)
Ben Romney
Chris Judd
Henry Wilson +44 20 7466 5000
About Diversified Gas & Oil
Diversified (AIM: DGOC) is an operator of oil and gas producing
assets. Its innovative, disciplined investment strategy is focused
on the acquisition of mature, low-decline and low-risk wells,
enhancement of operations with a focus on efficiency, and
maximization of profitability for shareholders. Founded in 2001,
Diversified has deep roots in the mineral-rich Appalachian United
States, and operates more than 18,000 producing wells. For more
information, visit us online at www.diversifiedgasandoil.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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