Diversified Gas & Oil PLC (AIM: DGOC), an Appalachian Basin focused producer of gas and oil, today announces the acquisition of 550 wells in Central Ohio from NGO Development Corporation, Inc. (the “Acquisition”). The Acquisition purchase price is $3.1 million met in cash from the Company's existing resources. Net production of the acquired wells is approximately 1,300 mcfe/d or 220 boe/d. The Acquisition is immediately accretive to operating cash flows and is consistent with the Company's prior acquisition criteria.
Diversified will assume immediate control of operations of the wells, which are located in close proximity to existing operations.
Commenting on the acquisition, CEO Rusty Hutson Jr said:
“This bolt-on acquisition is in line with our growth strategy. It provides yet more scale to our operations in the prolific Appalachian Basin and further enhances our production and cash flows. The deal is attractively priced and in line with our acquisition criteria in terms of valuation metrics and geographic proximity to our existing operational footprint. Our ability to source and execute on deals of this kind is a key differentiator and we continue to opportunistically identify additional assets that complement and grow our existing portfolio and generate the consistent and low-risk cash flows that underpin our business model.”
This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.