Proposed Acquisition Update

RNS Number : 6258G

Diversified Gas & Oil PLC

31 May 2017

 

31 May 2017

Diversified Gas & Oil PLC

("DGO" or the "Company")

Proposed Acquisition of certain gas and oil assets - update

Diversified Gas & Oil PLC (AIM: DGOC), a US based gas and oil producer, announced on 5 May 2017 that it had entered into a conditional sale and purchase agreement to acquire certain gas and oil assets of Titan Energy, LLC (the "Acquisition").

The Company stated that the Acquisition will constitute a reverse takeover in accordance with the AIM Rules for Companies and is subject to approval by DGO shareholders. Accordingly, the Company's ordinary shares were suspended from trading on AIM and will remain suspended until a new AIM admission document has been published.

The Company is pleased to confirm that it has made good progress with regard to completing the financing of the Acquisition and in preparing the information required to be included in the new AIM admission document.  This exercise is now expected to be completed in mid-June 2017.  Upon publication of the new AIM Admission Document the Board expects that trading in the Company's ordinary shares on AIM will resume, with the only remaining conditionality relating to the closing of the Acquisition being DGO shareholder approval at a General Meeting to be held on or before 30 June 2017.

The Company is also pleased to confirm that the Company's preliminary results for the year to 31 December 2016 are expected to be announced on 7 June 2017.

The Company will update shareholders with further information as appropriate.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Diversified Gas & Oil PLC Rusty Hutson Jr., Chief Executive Officer Brad Gray, Finance Director www.diversifiedgasandoil.com	+ 1 [phone]
Smith & Williamson Corporate Finance Limited (Nominated Adviser & Joint Broker) Russell Cook Katy Birkin	[phone]
Mirabaud Securities LLP (Lead Broker) Peter Krens Edward Haig-Thomas	[phone]
Buchanan (Financial Public Relations) Ben Romney Chris Judd Henry Wilson [e-mail]	[phone]

About Diversified Gas & Oil

Diversified Gas & Oil PLC owns and operates gas and oil producing wells in the Appalachian Basin, one of the largest oil and gas fields in the US. The Company was founded in 2001 and has grown rapidly in recent years, capitalising upon opportunities to acquire conventional, low risk gas and oil producing assets. DGO was admitted to trading on AIM in February 2017, raising $50 million from institutional and other investors. In April 2017, the Company acquired a package of 1,300 producing gas and oil wells in the states of Ohio and Pennsylvania. Following this acquisition, DGO currently has total daily production of approximately 30,000 Mcfd and 585 bopd, representing a 14% increase in current gas production and a 23% increase in current oil production since admission. 

 

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