LONDON (Alliance News) - Diversified Oil & Gas PLC began trading on London's AIM market on Friday, having raised around GBP39.7 million to pay down debt and provide working capital for its US-based oil and gas production business.
The company owns onshore oil and gas licences in the Appalachian Basin in the northeastern US. It currently produces around 26,000 cubic feet of gas and 475 barrels of oil per day from its assets.
The group has issued 61.0 million shares at 65.00 pence each to raise the GBP39.7 million in funding and will have a market capitalisation of around GBP68.6 million upon admission.
Smith & Williamson Corporate Finance Ltd is acting as Diversified Oil & Gas's nominated adviser and joint broker, while Mirabaud Securities LLP is acting as lead broker.
"Diversfied Oil & Gas has grown exponentially since inception in 2001 and we believe that our admission to AIM will provide the company with a platform from which we can accelerate this growth trajectory," said Rusty Hutson Jr, the firm's chief executive.
"We have a well-defined growth strategy based on proven and low-risk operations and the opportunity for complementary acquisitions that we are uniquely positioned to execute on," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.
