Diversified Gas & Oil PLC Completion of EdgeMarc Acquisition (8799M)
19 September 2019 - 4:01PM
UK Regulatory
TIDMDGOC
RNS Number : 8799M
Diversified Gas & Oil PLC
19 September 2019
19 September 2019
DIVERSIFIED GAS & OIL PLC
("DGO" or the "Company")
Completion of EdgeMarc Acquisition
Diversified Gas & Oil PLC (AIM: DGOC), the U.S. based owner
and operator of natural gas, natural gas liquids and oil wells as
well as midstream assets, confirms that further to the
announcements made by the Company on 25 July 2019 and 29 August
2019, on 18 September 2019 it completed the purchase of certain
assets (the "Acquisition") from EdgeMarc Energy Holdings, LLC, and
certain of its subsidiaries, ("EdgeMarc"). The conditions of the
Acquisition have been met in full.
The consideration for the Acquisition was $50 million (or
approximately $48 million in cash after customary purchase price
adjustments), funded from existing debt facilities, to acquire (a)
12 producing unconventional Utica natural gas wells and related
facilities in Monroe and Washington counties within the State of
Ohio, (b) three drilled but uncompleted wells ("DUCs"), and (c)
undeveloped land containing deep Utica rights. The Company also
paid approximately $1.6 million (net of hedge cash settlements from
the 1 August 2019 effective date) for EdgeMarc's natural gas
financial hedge portfolio.
Commenting on the completion of the Acquisition, CEO, Rusty
Hutson, Jr., said:
"We are pleased to close this acquisition just three weeks after
a successful bid. We now turn our attention to fully integrating
these accretive assets and to determining the optimal way to
realise additional value for the acquired DUCs and undrilled
locations."
Diversified Gas & Oil PLC
Rusty Hutson Jr., Chief Executive Officer
Brad Gray, Chief Operating Officer & Finance Director
Eric Williams, Chief Financial Officer
www.dgoc.com
ir@dgoc.com + 1 (205) 408 0909
Cenkos Securities plc
(Nominated Adviser)
Russell Cook
Katy Birkin
Ben Jeynes +44 (0)20 7397 8900
Mirabaud Securities Limited
(Joint Broker)
Peter Krens
Edward Haig-Thomas +44 (0)20 3167 7221
Stifel Nicolaus Europe Limited
(Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0)20 7710 7600
Buchanan
(Financial Public Relations)
Ben Romney
Chris Judd
James Husband
dgo@buchanan.uk.com +44 20 7466 5000
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END
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