COVID-19 Update

RNS Number : 8150I

Diversified Gas & Oil PLC

06 April 2020

 

6 April 2020

DIVERSIFIED GAS & OIL PLC
("DGO" or the "Company")

COVID-19 Update

Diversified Gas & Oil plc (AIM: DGOC), the U.S. based owner and operator of natural gas, natural gas liquids, and oil wells and midstream assets, provides the following update with regard to the impact of COVID-19 on its operations.  

DGO is pleased to report that, to date and despite a challenging environment, normal operations continue with little-to-no impact from COVID-19.  Having been deemed a provider of "essential services" in each of the states in which the Company operates, DGO and its field operations employees are exempt from restricted movement orders and are authorised to continue operating DGO's assets. As the Company monitors the situation, its commitment to the health and safety of its employees and to the citizens within the communities in which DGO operates remains a top priority. The nature of its operations in often rural locations naturally limits the amount of human-to-human interaction, thus creating a natural 'social distancing' for DGO's field employees.   

DGO's stable production, low operating costs and robust hedging strategy mitigate the impact of low commodity prices and underpin steady cash flows, profitability and ability to maintain its stated dividend.

DGO has been closely monitoring the potential impact posed by COVID-19, particularly within its areas of operations, and is routinely updating its employees with pertinent information regarding the virus and related Company protocol.  The Company is complying with state and federal restrictions in order to prevent the spread of the virus and to protect the safety and health of the Company's employees, including:

· Implementing telecommuting for those who can perform their duties remotely

· Cancelling all non-essential business travel, utilising video conferencing instead

· Asking employees to self-report if they have previously, or plan to, travel internationally

· Following / promoting U.S. Centres for Disease Control guidelines for self-quarantine decisions

· Adopting enhanced sanitation measures at Company locations

Recognising our responsibility to support the communities in which we operate during this difficult time, the Company has also donated approximately $25,000 to community food banks in the states of West Virginia, Kentucky, Pennsylvania, Ohio, Virginia and Tennessee and will continue to provide support to these communities.

Commenting on the update, Rusty Hutson, Jr., CEO of the Company said,

"Despite the severe impact of COVID-19 to the United States and the disruption in the states in which we operate, we remain committed to safely produce and deliver our production in order to meet the energy demands of our local communities. Times like these emphasise the significance of our number one operational priority - Safety: No Compromises.

"Importantly and despite the recent decline in natural gas pricing, our demonstrable commitment to responsibly hedge commodity prices ensures healthy cash flows and allows us the ability to maintain our dividend to shareholders when others have been forced to decrease, suspend or eliminate their distributions. As we continue to maintain production and largely normal operations in this turbulent time, we send our heartfelt support to those affected by COVID-19 and offer our sincere appreciation to those working to combat this virus."

Diversified Gas & Oil PLC Rusty Hutson Jr., Chief Executive Officer Brad Gray, Chief Operating Officer Eric Williams, Chief Financial Officer & Finance director Teresa Odom, Vice President Investor Relations www.dgoc.com [e-mail]	+ 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 Ashton Clanfield	[phone]
Buchanan (Financial Public Relations) Ben Romney Chris Judd Kelsey Traynor James Husband [e-mail]	[phone]

 

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