Diversified Gas and Oil Buys Appalachian Basin Assets from Titan Energy.
M2 EQUITYBITES-May 10, 2017-Diversified Gas and Oil Buys Appalachian Basin Assets from Titan Energy
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10 May 2017 - US based gas and oil producer Diversified Gas and Oil plc (AIM: DGOC) has entered into a conditional sale and purchase agreement to acquire certain gas and oil assets of Titan Energy for USD 84.2m, LLC in the Appalachian Basin, the company said.
These holdings are principally the states of Ohio, Pennsylvania, southern New York and northeast Tennessee.
This acquisition that will increase DGO's gross oil and gas production to approximately 18,300 boepd (11,000 boepd).
Cash consideration of USD 84.2m to be funded through a new term debt facility provided by Angelo, Gordon and Co and a proposed placing of new ordinary shares raising a minimum of USD 20m.
Following the acquisition, the company will be producing from licences held by production over a total area of approximately 1.6 m acres, an increase of some 42%.
The deal adds approximately 7,300 producing wells, with the majority of the wells in DGO's existing operating geography.
Total gas production at 75,000 gross Mcfd, more than trebles the company's current gross production to approximately 104,200 Mcfd.
Total oil production at 380 gross bopd, represents a 69% increase to current gross production.
The new wells will be immediately accretive to EBITDA, Diversified Gas and Oil said.
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|Publication:||M2 EquityBites (EQB)|
|Date:||May 10, 2017|
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