LONDON (ShareCast) - (Sharecast News) - AIM-listed producer Diversified Gas and Oil has agreed to acquire a network of further gas and oil producing assets in the Appalachian Basin.
DGOC has finalised terms to acquire the assets, located in the US states of Ohio, Pennsylvania, West Virginia and Tennessee, from a "major US oil and gas operating group" for a total cash consideration of approximately $575m, making it the largest acquisition by an oil and gas company in the history of AIM.

The acquisition will more than double DGOC's production capacity and increase it's proved developing producing reserves to an estimated 393m barrels of oil, giving the firm a pro forma uplift to its 2017 EBITDA of approximately 225% and making it one of the top producers on the London Stock Exchange.

DGOC will finance the acquisition through an extension of its existing syndicated bank facility and by way of a share placing to raise up to $250m at a placing price of 97p per share.

"Details of the acquisition will be set out in an admission document and circular to shareholders which is expected to be published by not later than 0700 BST on 29 June 2018," said DGOC.

As of 1150 BST, DGOC shares had dipped 0.38% to 95.63p

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