First Day of Dealings on AIM

First Day of Dealings on AIM

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN ADMISSION DOCUMENT AND DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY ORDINARY SHARES IN THE CAPITAL OF THE COMPANY, NOR SHALL IT (OR ANY PART OF IT), OR THE FACT OF ITS DISTRIBUTION, FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH OR ACT AS ANY INDUCEMENT TO ENTER INTO, ANY CONTRACT OR COMMITMENT WHATSOEVER.

 

3 February 2017

Diversified Gas & Oil PLC

(“DGO”, the “Company” or the “Group”)

First Day of Dealings on AIM

Diversified Gas & Oil PLC, a US based gas and oil producer, is pleased to announce the admission of its issued share capital to trading on AIM. This follows the completion of a placing of 61,000,000 new Ordinary Shares at 65 pence per share to raise $50 million (approximately £39.7 million) (before expenses), giving the Company a market capitalisation of approximately $86.4 million (approximately £68.6 million) on Admission at the Placing Price. The funds raised will be used for the repurchase of Bonds, repayment of existing debt facilities, costs of Admission and working capital requirements of the Group.

Smith & Williamson Corporate Finance Limited is acting as nominated adviser and joint broker to the Company and Mirabaud Securities LLP is acting as lead broker.

 

Highlights:

  • Established, profitable, proven and fast growing US oil and gas company
  • Onshore licences in Appalachian Basin, northeastern US
  • Total proved reserves of oil of approximately 2,271 mmbbl (1,470 producing) and gas reserves of approximately 153,695 mcf (135,402 producing)
  • Current daily gas production is running at approximately 26,000 mcfd and oil production is approximately 475 bopd
  • Since incorporation in 2001, the Group has never drilled a non-producing well
  • Successful track record of sourcing, financing and closing acquisitions
  • Well defined growth strategy to grow production through organic and acquisitive means
  • DGO’s experienced management team and its proven ability to drive operational efficiency creates opportunities for additional value in a low commodity price cycle
  • The Board intends that not less than 40 per cent of operating free cash flow will be paid to Shareholders by way of a dividend.

 

Rusty Hutson Jr., Chief Executive Officer of DGO, said:

“We are delighted to be joining AIM and thank our existing and new shareholders for their support in the Placing. DGO has grown exponentially since inception in 2001 and we believe that our admission to AIM will provide the Company with a platform from which we can accelerate this growth trajectory. We offer a compelling proposition given our extensive acreage position in the Appalachian Basin, our low cost production, our proven track record for value creation and our commitment to pay a dividend to our shareholders. We have a well-defined growth strategy based on proven and low-risk operations and the opportunity for complementary acquisitions that we are uniquely positioned to execute on. We look forward to communicating on our progress as we begin our life as an AIM quoted company.”

 

Diversified Gas & Oil PLC
+ 1 (205) 408 0909
Rusty Hutson Jr., Chief Executive Officer
Brad Gray, Finance Director
www.diversifiedgasandoil.com

Smith & Williamson Corporate Finance Limited (Nominated Adviser & Joint Broker)
+44 20 7131 4000
Russell Cook
Azhic Basirov
Katy Birkin

Mirabaud Securities LLP (Lead Broker)
+44 20 7878 3362
Peter Krens
Edward Haig-Thomas

Buchanan (Financial Public Relations)
+44 20 7466 5000
Ben Romney
Chris Judd
Henry Wilson
dgo@buchanan.uk.com

 

Defined terms used in this announcement have the same meaning as set out in the Company’s Admission Document dated 30 January 2017.

 

Full announcement here