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Diversified Gas & Oil completes US$575mln acquisition, more than doubling production

“Completing a transaction of this size further increases DGO's visibility of the preferred and capable purchaser of similar assets.”
oil and gas operations
Daily production now rises above 60,000 boepd

Diversified Gas & Oil plc (LON:DGOC) this morning confirmed the completion of its latest transformational acquisition, buying producing wells and midstream infrastructure in the Appalachian Basin.

The US$575mln deal more than doubles the group’s output, daily production rates are set to increase by 115% to over 60,000 barrels of oil equivalent per day.

READ: DGOC continues its ambitious, acquisitive strategy

It was paid for via the company’s cash resources, supported by a US$240mln equity raise, and, an expanded revolving credit facility - which runs up to US$1bn, with a current borrowing base of US$600mln.

Rusty Hutson, DGOC chief executive, said: "Delivering on our stated objectives has been a guiding principle since our admission to AIM in February 2017.

“The addition of these high-quality assets to our growing portfolio and their accretive impact on earnings are tangible results that benefit our shareholders and represent a significant milestone in the evolution of our clearly stated strategy.

“Completing a transaction of this size further increases DGO's visibility of the preferred and capable purchaser of similar assets.”

He added: “We now turn our attention to the optimisation and integration of these assets into our expanding operations.

“To help accomplish this task, I am excited to welcome to Diversified the more than 250 exceptional operations personnel who have cared for these assets for years and in many cases, for decades.”

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Diversified Gas & Oil PLC Timeline

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