14th Jun 2018 13:14
LONDON (Alliance News) - Shares in Diversified Gas & Oil PLC were suspended on Thursday as the company signed a non-binding letter of intent to acquire a network of gas and oil producing assets in the Appalachian Basin for a total of USD575 million.
The assets to be acquired consists of 11,350 wells with net total gas production of 32.1 million barrels of oil equivalents per day, which represents an increase in daily net production for Diversified of 114%.
The company's total acreage will increase to 6.5 million acres from 4.0 million, and the pro forma uplift in 2017 earnings before interest, taxes, deprecation and amortisation is estimated to more than triple.
In addition, proven developed producing reserves will more than double to 393 million barrels of oil equivalent from 193 million barrels.
The payment will be funded by a new debt facility of USD1.0 billion from which Diversified will draw USD376 million, and up to USD225 million to be raised from a placing of new shares.
Related Shares:
DGOC.L