The Facility will be subject to an initial borrowing limit of US$140 million in conjunction with the closing of Alliance Petroleum Corporation’s acquisition, increasing to US$200 million following the closing of the acquisition of certain Appalachian-based assets of CNX Gas Company Limited.
DGOC announced the signing of two unrelated conditional sale and purchase agreements, which collectively will increase net daily production by 173% and net proved developed producing reserves by 217%.
In December, DGOC purchased approximately 550 producing wells from NGO Development corporation.
In July 2017, DGOC paid its first dividend to shareholders totaling nearly $3 million or $0.0199 per share.
In February 2017, DGOC purchased approximately 9,000 wells from Titan Energy (of which the purchase of certain wells was completed in September 2017).
In June, the company acquired approximately 7,300 producing gas and oil wells from Titan Energy LLC, $35 million equity raising and $110 million financing.
In February 2017, 1,300 producing wells were purchased from EnerVest Ltd for $1.75 million
In February 2017, the Company’s ordinary shares were admitted to trading on the AIM Market of London Stock.
Exchange (AIM) having successfully raised $50 million equity from blue-chip institutional investors.
In April 2016, DGO acquired approximately 1,300 conventional natural gas and oil wells in Ohio, in addition to equipment, from Eclipse Resources.
The total consideration amounted to $4.8 million.
In June 2016, DGO acquired 2,200 conventional natural gas and oil wells, in addition to pipeline assets, located in Pennsylvania from Seneca Resources. The total consideration paid amounted to $3.55 million.
In 2015, DGO successfully listed a corporate bond in London on the ISDX Growth Market. The Company raised approximately £10.5 million via the bond.
The proceeds of the Bonds were used to purchase oil and gas producing assets in Ohio, reduce high yield debt and provide alternative sources of funding for acquisitions as part of the Group’s wider growth strategy.
In June 2015, DGO acquired 732 conventional natural gas and oil wells from Broadstreet Energy based in Ohio. The total consideration paid amounted to $2.6 million, which comprised cash of $600,000 and a short-term loan note of $2 million.
In November 2015, DGO acquired 1,709 conventional natural gas and oil wells and two buildings in Pennsylvania and West Virginia in addition to equipment and automobiles from Texas Keystone Inc.
As part of and in connection with this Keystone transaction, between December 2015 and January 2016, DGO also acquired certain overriding royalty interests in these wells and the Indiana, Pennsylvania real estate from Falcon Partners Trust and acquired certain of the leases and wells (including working interests and net revenue interests) related to those wells from Keystone Energy Oil & Gas, Inc. The total collective consideration paid in these transactions amounted to $725,000.
DGO expanded into Ohio by acquiring the conventional assets of AB Resources for $14.5 million. The acquisition added over 700 wells to DGO’s portfolio, approximately 1,600 mcfe per day, and around 35,000 acres of conventional drilling. DGO employed 6 additional members of staff to provide infrastructure support to its geographical expansion.
This acquisition was followed by the $5.2 million acquisition of Deep Resources Inc., resulting in an additional 321 wells and 83 net barrels of oil per day in Ohio.
DGO’s operations totaled 237 wells, producing 2,700 mcfe per day of natural gas in West Virginia
Rusty Hutson Jr. and Robert Post acquired the assets of Diversified Resources, Inc. in West Virginia, paying $5.2 million for 100 wells and several hundred acres of drilling leases, forming the branded name of “Diversified.”
DGO drilled a number of wells at a cost ranging from $150,000 to $350,000 per well. DGO’s capital for the drilling of the wells was funded by Robert Post and Rusty Hutson Jr. personally and supplemented by bank financing.
Robert Post partnered with Rusty Hutson Jr. Together they continued to expand the business within West Virginia, through a combination of drilling existing leases and the acquisition of operating assets.
Rusty Hutson Jr. began the business as a West Virginian oil and natural gas production company, whilst still working for a large financial institution in Birmingham, Alabama.