Borrowing Base Update, Expanding Lending Group

RNS Number : 7011A

Diversified Gas & Oil PLC

23 January 2020

 

23 January 2020

Diversified Gas & Oil PLC

("DGO" or the "Company")

 Borrowing Base Update, Expanding Lending Group

Diversified Gas & Oil PLC (AIM: DGOC), a U.S. based owner and operator of natural gas, natural gas liquids, oil wells and midstream assets in the Appalachian Basin, announces that its lenders, led by KeyBank National Association, have completed the semi-annual redetermination of its senior secured credit facility and affirm a $650 million borrowing base following DGO's successful $200 million securitisation financing completed and announced in November 2019.

DGO is also pleased to welcome Credit Suisse, Goldman Sachs and Morgan Stanley to the lending syndicate, increasing the syndicate to 17 banks. In addition to their lending capacity within the credit facility, these banks further enhance the suite of services available to DGO including long-tenor hedging capabilities suited to the Company's long-life, low-decline asset base.

The pricing grid for amounts drawn on the credit facility remains unchanged at LIBOR plus 2.0%-3.0% depending on utlilisation, and the maturity year of the facility remains unchanged at 2023. DGO expects to resume its planned redetermination timeline with the next redetermination scheduled for Spring 2020.

Borrowings under the Company's senior secured credit facility as at 31 December 2019 were approximately $437 million, resulting in liquidity of approximately $213 million.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Diversified Gas & Oil PLC Rusty Hutson Jr., Chief Executive Officer Bradley G. Gray, Chief Operating Officer and Finance Director Eric Williams, Chief Financial Officer www.DGOC.com	+ 1 [phone]
Cenkos Securities plc Nominated Adviser Russell Cook Katy Birkin Ben Jeynes	[phone]
Mirabaud Securities Limited Joint Broker Peter Krens Edward Haig-Thomas	[phone]
Stifel Nicolaus Europe Limited Joint Broker Callum Stewart Jason Grossman Nicholas Rhodes Ashton Clanfield	[phone]
Buchanan Financial Public Relations Ben Romney Chris Judd Kelsey Traynor James Husband [e-mail]	[phone]

 

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