DGOC.L Regulatory News (DGOC)

19 July 2018

Diversified Gas & Oil PLC

("DGO" or the "Company")

Closing of an Enlarged $1 billion Credit Facility in conjunction with closing ofacquisitions of Appalachian oil and gas and midstream assets from EQT Corporation

Diversified Gas & Oil PLC (AIM: DGOC) the U.S.-based acquirer and operator of gas and oil producing assets, today announced the closing of an enlarged $1 billion, five-year senior secured revolving credit facility (the "Facility") with KeyBanc Capital Markets ("KeyBanc"), The Huntington National Bank ("Huntington"), and Citizens Bank, N.A. ("Citizens") and Branch Banking and Trust Company ("BB&T") who collectively acted as joint lead arrangers. KeyBanc provided Diversified with a fully underwritten Borrowing Base in support of the Company's $575 million acquisition of EQT Corporation's southern Appalachian gas and oil and midstream assets (the "EQT Asset Acquisition"), and later partnered with Huntington and Citizens to co-underwrite the borrowing base prior to the broader re-syndication. Upon a successful re-syndication, the Facility includes five new lending institutions for a total of 11 participating banks, which include ING Capital LLC, IberiaBank, CIBC, Credit Agricole, US Bank, CIT Bank, and First Tennessee.

The Facility's current borrowing base of $600 million is three times larger than the prior facilities $200 million base, and highlights the strength of the Company's growing, high-quality base of proved reserves.

The enlarged Facility follows the highly successful completion of DGO's $250 million equity raise and its EQT Asset Acquisition, which increases the Company's proved-developed-producing reserves by more than 140% to approximately 2.4 trillion cubic feet of gas equivalent. The acquisition also provides the Company with a midstream asset that includes 6,400 miles of pipeline and 59 compressor stations that significantly enhance the economics of the Company's production in that region of the Basin.

CEO, Rusty Hutson, Jr. commented:

"Building on the strong relationship we have developed with KeyBanc, Huntington and Citizens, we are pleased to have closed on the EQT Asset Acquisition that underpinned our need to triple the size of our borrowing base in less than four months from first establishing the facility in March of this year. The completion of this enlarged facility strengthens our balance sheet, affords us more than $200 million of liquidity and maintains our low financing costs. I'd like to thank each of the banks for their support of our strategy to acquire long-life, low decline producing assets."

About Diversified Gas & Oil

Diversified Gas & Oil (AIM: DGOC) acquires and operates oil- and gas-producing assets in the Appalachian Basin of the United States. Diversified employs a disciplined investment strategy to acquire conventional and unconventional low-risk wells, enhance operations efficiently and maximize profitability for its shareholders. Founded in 2001, Diversified operates a growing portfolio of producing wells with the highest standards of safety, governance and transparency. For more information, visit us online at www.dgoc.com