Natural Gas Gathering System Acquisitions

RNS Number : 9203N

Diversified Gas & Oil PLC

27 September 2019

 

27 September 2019

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

Completion of Natural Gas Gathering System Acquisitions

Diversified Gas & Oil PLC (AIM: DGOC), the U.S. based owner and operator of natural gas, natural gas liquids, and oil wells as well as midstream assets, confirms that further to the announcement made by the Company on 27 August 2019, it has completed the purchase of two separate natural gas gathering systems in Pennsylvania and West Virginia (the "Assets").

The Assets, purchased from Dominion Gathering and Processing, Inc. and Equitrans, L.P. for total cash consideration of $7.7 million including purchase price adjustments, comprise approximately 1,700 miles of low-pressure wet and dry gas gathering pipelines together with compressors, measurement stations and related facilities and equipment. Combined with DGO's existing southern midstream system, the Company now owns and operates approximately 12,000 miles of natural gas gathering and transporting pipelines across the Appalachian Basin.

Commenting on the completion of the acquisitions, CEO Rusty Hutson, Jr. said:

"We are pleased to close on these transactions and are eager to move forward with an expeditious integration of these assets into our midstream portfolio. The ability to control the flow of our gas while simultaneously increasing our market optionality and net cash margins represents another value enhancing transaction for the Company."

Diversified Gas & Oil PLC Rusty Hutson Jr., Chief Executive Officer Brad Gray, Chief Operating Officer & Finance Director Eric Williams, Chief Financial Officer 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 Nicholas Rhodes Ashton Clanfield	[phone]
Buchanan (Financial Public Relations) Ben Romney Chris Judd James Husband [e-mail]	[phone]

 

END

 

 

ACQUBSVRKRAKURR