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Diversified Gas & Oil starts trading on AIM

Published: 21:34 03 Feb 2017 AEDT

well and money, US dollars
DGO sold 61mln shares through a placing priced at 65p per share

US focussed Diversified Gas & Oil plc (LON:DGO) shares started trading on London’s AIM market on Friday following a US$50mln (£39.7mln) fund raise.

DGO sold 61mln shares through a placing priced at 65p per share.

The placing gives the group a market capitalisation of £68.6mln, and the cash will fund debt repayments and bond buy-backs.

DGO’s assets, in the Appalachian Basin of northeastern US, have 2.2mln barrels of proved oil reserves and 1.5bn cubic feet of gas. Daily production currently runs at 475 barrels of oil and 26,000 cubic feet of gas per day.

The company said it has a well defined growth strategy, through both organic and acquisitive means, and it will pay out no less than 40% of operating cash flow back to shareholders through dividends.

In a statement, DGO chief executive Rusty Hutson Jr: “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.”

Diversified Gas & Oil raises US$250mln to help fund its largest acquisition

Rusty Hutson, chief executive of Diversified Gas & Oil plc (LON:DGOC), tells Proactive Investors they've raised US$250mln via an oversubscribed placing priced at 97p per share to part fund the recently announced US$575mln acquisition of additional assets in the Appalachian...

on 2/7/18