Pre-close trading update

RNS Number : 1284D

Diversified Gas & Oil PLC

29 January 2018

 

29 January 2018

DIVERSIFIED GAS & OIL PLC

("DGO" or the "Company")

Pre-close trading update

Diversified Gas & Oil PLC (AIM: DGOC), a US based gas and oil producer with a focus on the Appalachian Basin, is pleased to provide the following production and trading update.

2017 was a year of significant growth for DGO as the Company delivered all its stated objectives, set at the time of its admission to AIM in February 2017, broadening its high-quality asset base and nearly tripling the Company's net daily production. Completing a total of three acquisitions throughout the year, including the transformative acquisition of producing wells and related assets from Titan Energy that the Company completed fully in October 2017, DGO ended the year as one of the largest oil and gas production companies on AIM.

The Board is pleased to report that trading for the year ended 31 December 2017 remains in line with market expectations and that prospects for 2018 look very encouraging. Consistent with its stated growth strategy, having now become an established consolidator of mature, low-decline producing assets within the Appalachian Basin, the Board is actively evaluating complimentary acquisition opportunities with confidence that it will announce further additions in 2018. The Company continues to achieve additional operational efficiencies across its enlarged portfolio.

The Company remains committed to and maintains a strong balance sheet with total liquidity of approximately $50m, including cash of approximately $15m as at 31 December 2017, undrawn debt within its current facility of $35 million and total net debt of less than $60m.

On or before 30 April 2018, the Company expects to announce its full year results to 31 December 2017, and similarly expects to announce a recommended final dividend to be paid in May 2018.

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 Brad Gray, Finance Director and Chief Operating Officer Eric Williams, Chief Financial Officer www.diversifiedgasandoil.com	+ 1 [phone]
Smith & Williamson Corporate Finance Limited (Nominated Adviser & Joint Broker) Russell Cook Katy Birkin	[phone]
Mirabaud Securities LLP (Joint Broker) Peter Krens Edward Haig-Thomas	[phone]
Buchanan (Financial Public Relations) Ben Romney Chris Judd Henry Wilson	[phone]

 

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