DGOC.L Regulatory News (DGOC)

30 October 2019

DIVERSIFIED GAS & OIL PLC

("DGO" or the "Company")

Proposed Securitization

Diversified Gas & Oil PLC (AIM: DGOC), the US based owner and operator of natural gas, natural gas liquids, oil wells and midstream assets in the Appalachian Basin, is pleased to announce that it is contemplating a securitization transaction where immediately prior to closing the Company will form a wholly owned (and fully consolidated for accounting purposes) special purpose vehicle, Diversified ABS LLC (the "LLC"), that will issue non-recourse, asset backed securities (the "Notes") in a private placement transaction. The Company expects to use the proceeds from any such offering to reduce its borrowings on its existing revolving credit facility and will collateralize the Notes with a portion of its working interest from its existing upstream proved-developed-producing asset portfolio. The LLC will use its net cash flows from the assets contributed to the LLC to satisfy the payment of the Notes principal and interest payments.

Accordingly, the Company will today make the required filings with the United States Securities and Exchange Commission. While the Company is contemplating the proposed issue of the Notes, it can offer no certainty at this point that that the issue of the Notes will be completed. The Company will make further announcements as appropriate.

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

Enquiries