LONDON (ShareCast) - (Sharecast News) - AIM-listed, US-based oil and gas producer Diversified Gas & Oil on Friday confirmed the $575m acquisition of additional assets in the Appalachian Basin from EQT Corporation.
Diversified said that the completion of the acquisition, which was part-funded through a $250m placing priced at 97p per share, has resulted in the resumption of trading in its shares after they were suspended following the initial announcement of the deal on 14 June.

The remaining acquisition cost has been funded through an extension to its existing loan facility.

Rusty Hutson, chief executive of Diversified Gas & Oil, said: "This transaction is yet another game-changer for us as we double our production once again to become one of the largest producers listed in the London market. We are delighted with the faith the market has put in our management team to deliver its growth strategy and thank the new and existing shareholders."

The company said the deal with EQT will more than double its production to approximately 60,000 barrels of oil equivalent per day and increases PDP reserves to 393m barrels of oil equivalent.

Furthermore, the acquisition is expected to be immediately accretive to cash and earnings.

"We look forward to completing the acquisition of these assets, integrating and optimising them within our existing portfolio, and leveraging our vastly increased financial profile to deliver reliable and sustainable returns to our shareholders through our proven dividend model," said Hutson.

As of 0855 BST, Diversified Gas & Oil's shares were up 31.35% at 126.10p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE