London law firm Wedlake Bell LLP has advised Diversified Gas & Oil PLC ("DGO") on its acquisition from EQT Corporation ("EQT") of approximately 11,250 additional producing wells located in the states of Kentucky, West Virginia and Virginia for $575 million using gross proceeds of (i) a $250 million placing of new shares on AIM and (ii) a new revolving debt facility of up to $1 billion. This is the largest acquisition by an oil & gas company in the history of AIM and because of its size, the acquisition constitutes a reverse takeover under the AIM Rules. The transaction was approved by DGO's shareholders at the company's General Meeting on 16 July and the shares were admitted to trading on AIM at 8am on 17 July. The acquisition of the EQT entities in the US was completed on 18 July.
DGO is a United States based gas and oil producer already operating over 40,000 wells across the states of Ohio, Pennsylvania, West Virginia and North-East Tennessee. The strategic acquisition from EQT is part of DGO's growth plan to build its oil and gas assets across the US.
The Wedlake Bell Team who advised on the transaction was led by Corporate Partner Martin Thomas, who recently joined the firm to head up its capital markets practice. Martin has advised DGO on all of its capital markets transactions over the past 4 years.
Wedlake Bell Corporate Partner Edward Craft, Senior Associate Kam Lally, Solicitor Alex Green and Trainee Solicitor Omar Amin also assisted with the transaction. Crowe acted as reporting accountant to the transaction and the legal advisers to DGO's Nominated Adviser (Smith & Williamson) and Joint Brokers (Mirabaud and Stifel) were Fieldfisher LLP.
Rusty Hutson, Chief Executive Officer of Diversified Gas & Oil PLC, says:
“We had no hesitation turning again to Martin Thomas in late June 2018 to advise us on our latest and largest AIM fundraising to date. As always, Martin and his team at Wedlake Bell were extremely supportive, proactive and professional. I would certainly recommend Martin and his colleagues to other growing international companies.”
Martin Thomas, Corporate Partner at Wedlake Bell, comments:
“We are pleased that we have been able to achieve the desired result for our client in what was a large and complex deal to advise on. The depth of expertise on AIM amongst the team at Wedlake Bell was a great asset in this transaction. I am proud of my long-standing relationship with Diversified Gas & Oil and I look forward to working with them again in the future.”