18 April 2016
Diversified Gas & Oil Plc
("DGO" or the "Company")
Trading Update
Diversified Gas & Oil Plc (ISDX: DOIL), is pleased to provide a trading update for the period ending 31 March 2016.
On 7 March 2016 DGO listed an Information Memorandum for the issue of up to a further £3.6m of Bonds on the ISDX Growth Market. Since then the Company has raised £2.7m. These funds have been utilized in the acquisition described below. To date DGO has raised an aggregate of £6.9m.
The coupon payments have all been paid to bondholder on time, including the most recent for Q1 2016 which was paid by the Company on 31 March 2016.
On 13 April 2016, DGO completed the acquisition of all the conventional assets of Eclipse Resources in the State of Ohio (USA) for $4.8 million. The purchase was funded through a combination of the Bonds issued, senior secured funding and equity. The assets acquired included approximately 1,300 conventional oil and gas wells producing approximately 250 barrels of oil per day ("BOPD") and 3,000 MCF per day of natural gas production. This is the Company's largest acquisition in the State of Ohio to date.
As a result of this acquisition, DGO now owns and operates approximately 5,000 conventional wells in Ohio, West Virginia and Pennsylvania, producing approximately 450 BOPD and 13,000 MCF per day of natural gas.
Rusty Hutson, Chief Executive Officer, commented the following:
"The Company continues to identify strong M&A opportunities as part of our ongoing strategy to consolidate and expand our position in the new potential significant Appalachian Basin."
Neither this announcement nor the information contained herein constitutes an offer or solicitation by Diversified Gas & Oil Plc for the purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful.
The Directors of Diversified Gas & Oil Plc accept responsibility for this announcement.
COMPANY CONTACT DETAILS:
Rusty Hutson, Chief Executive Officer
Diversified Gas & Oil
100 Corporate Ridge,
Suite 100,
Birmingham,
Alabama 35242
USA
Telephone: + 1 205 408 0909
http://www.diversifiedgasandoil.com/
ISDX CORPORATE ADVISER:
Alexander David Securities Limited
David Scott - Corporate Finance
James Dewhurst - Institutional Sales
Telephone: +44 (0) 20 7448 9820
http://www.ad-securities.com
49 Queen Victoria Street, London EC4N 4SA
