LONDON (Alliance News) - Diversified Gas & Oil PLC on Thursday said it raised gross proceeds of USD234 million via a share placing in order to fund the USD400 million acquisition of a number of gas producing assets.
The company issued 151.5 million shares at 117 pence each, netting USD225 million after expenses.
Diversified Gas & Oil shares were trading 6.0% higher at 124.00 pence each on Thursday afternoon.
The net proceeds of the placing, together with a drawdown from the company's existing KeyBank facility, will cover acquisition of HG Energy II Appalachia LLC. Included in the assets are 107 gas producing wells with a net daily production exceeding 20,000 barrels of oil equivalent, located near Diversified's existing operations in Pennsylvania and West Virginia.
Mirabaud Securities Ltd and Stifel Nicolaus Europe Ltd acted as joint bookrunners for the placing.
Application of the new shares to trading, if approved by the company's shareholders at a meeting on April 17, is expected on April 18.
Furthermore, the company said that as a result of demand in excess of the amount to fund the acquisition, Trive Capital disposed of its stake, selling 12.5 million shares in a secondary sale of shares.
The company will not gain any funds from the secondary sale.