London Stock Exchange welcomes Diversified Gas & Oil
Diversified Gas & Oil (“DGO” or “The Company”) (EPIC: DGOC) the oil and gas company focused on the Appalachian Basin in North-eastern United States, was welcomed today to the AIM market of the London Stock Exchange. Having successfully raised $50 million with blue chip institutional investors, it represents the largest oil and gas listing in London for two and a half years.
The Company, founded in 2001 by its CEO Rusty Hutson and Executive Chairman Robert Post, has grown exponentially since inception through a combination of operational success and strategic acquisitions. DGO is a production growth story, currently producing 4,700boepd from over 7,500 conventional wells in West Virginia, Ohio and Pennsylvania, collectively. DGO has 27.9 mmboe of proven reserves and the assets are characterised as being long-life and geologically low-risk. As an efficient onshore operator, a key differentiator for DGO is the low-cost nature of its production, meaning the company remains profitable even in a low commodity price environment.
The Company has completed over $40 million in acquisitions since 2006 and has a proven track record for sourcing, acquiring, integrating and enhancing complementary assets. DGO’s growth strategy will focus on organic growth through infill drilling opportunities, as well as through the acquisition of strategically complementary assets.
The AIM placing successfully raised US$50 million (£39.7 million) before expenses via the issue of 61,000,000 Ordinary Shares at the placing price of 65p per share. DGO will have an anticipated market capitalisation on admission of $86.4 million (£68.6 million)
Rusty Hutson Jr, CEO of DGO stated;
"We are delighted to be at the London Stock Exchange today to celebrate DGO’s achievement in listing on the AIM market. This listing represents a new chapter in the company’s story and we look forward to using our listing as a platform from which we can achieve our ambitious growth objectives. We would like to thank the investors who participated in the Placing and we look forward to rewarding them for their support by delivering on our stated milestones."
DGO’s advisers include Smith & Williamson Corporate Finance Ltd as Nominated Adviser, Mirabaud Securities LLP as broker, Watson Farley & Williams LLP as legal counsel and Buchanan as Financial PR.