Diversified Gas & Oil PLC - Placing, Acquisition

Placing of 195,330,000 new Ordinary Shares at 97 pence per Ordinary Share
to raise approximately $250 million

Acquisition of EQT entities holding certain gas and oil assets for $575 million

Admission of Enlarged Share Capital to trading on AIM


Diversified Gas & Oil PLC (AIM: DGOC), a US based gas and oil producer, is pleased to confirm that it has finalised the agreement to acquire entities holding certain gas and oil assets of EQT Corporation, which was announced on 14 June 2018.  The Acquisition, which is subject to approval by Shareholders, has been funded through an extension to its existing Loan Facility and a Placing to raise $250 million.

The Company has today published an Admission Document with details of the EQT Acquisition and Fundraising, and expects that trading in the Company's Shares on AIM will resume at 8.00am today.

The Company confirms that it has received undertakings from Shareholders in respect of approximately 73.9 percent of its voting share capital to vote in favour of the Resolution to approve the Acquisition and to grant to the Board the relevant authorities in respect of the Placing.


·      $575m acquisition of producing assets to materially expand the Group's operational footprint in Appalachian Basin, US

·      Successful completion of Placing to raise $250m at 97p per Ordinary Share

·      Transaction more than doubles production to circa 60 kboepd and increases PDP Reserves to 393 mmboe

·      The pro forma uplift in 2017 EBITDA is estimated to be approximately 289%*

·      The Acquisition will be immediately accretive to cash and earnings

At the Placing Price, on Admission DGO's market capitalisation is expected to be approximately $648.7 million (approximately £491.6 million).

Commenting on the Acquisition and Placing, CEO, Rusty Hutson said:

"Since our Admission to AIM in February of last year, we have grown the Company rapidly through a series of transformative acquisitions to become the largest producer on AIM.  This transaction is yet another game-changer for us as we double our production once again to become one of the largest producers listed in the London market.  We are delighted with the faith the market has put in our management team to deliver its growth strategy and thank the new and existing shareholders who participated in our over-subscribed placing.  We look forward to completing the acquisition of these assets, integrating and optimising them within our existing portfolio, and leveraging our vastly increased financial profile to deliver reliable and sustainable returns to our shareholders through our proven dividend model."

*    Based on pro forma estimate of 2017 EBITDA, including full year contributions from the Alliance Petroleum Corporation and CNX asset acquisitions.

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