Diversified Gas & Oil PLC Completion of EdgeMarc Acquisition (8799M)

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RNS Number : 8799M

Diversified Gas & Oil PLC

19 September 2019

19 September 2019

DIVERSIFIED GAS & OIL PLC

("DGO" or the "Company")

Completion of EdgeMarc Acquisition

Diversified Gas & Oil PLC (AIM: DGOC), the U.S. based owner and operator of natural gas, natural gas liquids and oil wells as well as midstream assets, confirms that further to the announcements made by the Company on 25 July 2019 and 29 August 2019, on 18 September 2019 it completed the purchase of certain assets (the "Acquisition") from EdgeMarc Energy Holdings, LLC, and certain of its subsidiaries, ("EdgeMarc"). The conditions of the Acquisition have been met in full.

The consideration for the Acquisition was $50 million (or approximately $48 million in cash after customary purchase price adjustments), funded from existing debt facilities, to acquire (a) 12 producing unconventional Utica natural gas wells and related facilities in Monroe and Washington counties within the State of Ohio, (b) three drilled but uncompleted wells ("DUCs"), and (c) undeveloped land containing deep Utica rights. The Company also paid approximately $1.6 million (net of hedge cash settlements from the 1 August 2019 effective date) for EdgeMarc's natural gas financial hedge portfolio.

Commenting on the completion of the Acquisition, CEO, Rusty Hutson, Jr., said:

"We are pleased to close this acquisition just three weeks after a successful bid. We now turn our attention to fully integrating these accretive assets and to determining the optimal way to realise additional value for the acquired DUCs and undrilled locations."

 
 Diversified Gas & Oil PLC 
  Rusty Hutson Jr., Chief Executive Officer 
  Brad Gray, Chief Operating Officer & Finance Director 
  Eric Williams, Chief Financial Officer 
  www.dgoc.com 
  [e-mail]                                              + 1 [phone] 
 Cenkos Securities plc 
  (Nominated Adviser) 
  Russell Cook 
  Katy Birkin 
  Ben Jeynes                                               [phone] 
 Mirabaud Securities Limited 
  (Joint Broker) 
  Peter Krens 
  Edward Haig-Thomas                                       [phone] 
 Stifel Nicolaus Europe Limited 
  (Joint Broker) 
  Callum Stewart 
  Nicholas Rhodes 
  Ashton Clanfield                                         [phone] 
 Buchanan 
  (Financial Public Relations) 
  Ben Romney 
  Chris Judd 
  James Husband 
  [e-mail]                                       [phone] 
 

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September 19, 2019 02:01 ET (06:01 GMT)