DGOC.L Regulatory News (DGOC)

15 March 2018

Diversified Gas & Oil PLC

("DGO" or the "Company")

New five year $500 million credit facility

Diversified Gas & Oil PLC (AIM: DGOC), a leading independent US based gas and oil producer focused on the Appalachian Basin, is pleased to announce that it has entered into a $500 million, five-year senior secured revolving credit facility ("Facility") with a syndicate of seven US banks, led by KeyBank National Association ("KeyBank"). KeyBanc Capital Markets served as the Sole Lead Arranger and Sole Bookrunner. Huntington Bank, Citizens Bank, BB&T, IBERIABANK, CIT Bank and First Tennessee Bank committed to the facility which will provide more liquidity and lower cost debt, with a new syndicate of relationship banks.

As previously announced on 20 February 2018, the Facility provides an initial borrowing limit of US$140 million, which will increase to US$200 million following anticipated closing later this month of the acquisition of certain oil and gas leaseholds, wells, working interests, licenses, related equipment and other assets of CNX Gas Company Limited. Importantly, the Facility significantly reduces the Company's interest rate from approximately 9.9% on amounts outstanding under the Company's previous facility agreement to approximately 4.5% on those amounts under this Facility.

DGO's signing of the new Facility from KeyBank follows its 20 February 2018 US$189 million placing, and represents another step in the Company's growth into a significant consolidator of mature, conventional assets in the Appalachian Basin.

CEO, Rusty Hutson commented:

"As we continue to identify complementary opportunities to grow our portfolio of high quality assets, we've stated that reducing our borrowing costs has been a strategic objective, and today's closing marks another instance of our delivering results for the benefit of our shareholders. The completion of the new credit facility is an important milestone for DGO, and we are grateful for KeyBank's leadership and the support of an exceptional syndicate group participating in the Facility. While firmly committed to maintaining a strong balance sheet with low leverage, we are excited to have this additional capital engine to fund our growth through the responsible use of debt capital, which will reduce our cash interest costs and favourably impact our stated dividend policy and per share returns to our shareholders."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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