Sign up Australia
Proactive Investors - Run By Investors For Investors

Diversified Gas & Oil unveils another major acquisition in the United States

A US$575mln deal, supported by a new US$1bn lending facility, is due to add 11,350 additional wells and will more than double production volumes
oil and gas operations
The new package represents some 32,100 boepd

Acquisitive US oil firm Diversified Gas & Oil PLC (LON:DGOC) has agreed a deal to pick up more assets, paying US$575mln for additional assets in the Appalachian Basin.

The next package of assets comprise some 11,350 wells yielding 32,100 barrels oil equivalent per day.

WATCH: Diversified Gas & Oil enjoying 'robust production and increasing cashflow'

It will increase the group’s total outcome by 114%, compared to the daily rate measured at the end of March. Moreover, it is forecast to increase earnings (EBITDA) by 289%.

In terms of physical assets, the net acreage under lease expands to 4mln acres to 6.5mln acres, and, the reserves jump 142% to 393mln barrels oil equivalent, from 163mln barrels. Additionally, it adds more infrastructure such as pipelines and compression stations.

The deal will be funded by a new debt facility, of up to US$1bn, which begins with a borrowing base of US$600mln – some US$376mln will be drawn from the facility for the transaction.

It will constitute a reverse takeover under AIM market rules, and as such, the London quoted shares are now suspended.

Earlier this year, the company completed two major acquisitions in the Appalachian Basin.

View full DGOC profile View Profile

Diversified Gas & Oil PLC Timeline

Related Articles

Gas valves
April 20 2018
The oil and gas producer said it believes the additional work will allow access to twice as many “pay zones” as well as shortening the time-frame to commercial gas production
Celtic Sea
September 20 2018
“We expect to see share price appreciation as news of the planning stages indicates the approach of the drilling stages of the appraisal programme.”
oil and gas operations
July 20 2018
“To open up the well and have clean oil come to surface with no water meant the Gatwick Gusher gushed again – a lot earlier than we thought,” Lenigas said in exclusive interview with Proactive Investors’ Andrew Scott.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use