30 Oct 2017 07:00
30 October 2017
DIVERSIFIED GAS & OIL PLC
("DGO" or the "Company")
Trading update
Diversified Gas & Oil PLC (AIM: DGOC), an Appalachian Basin focused producer of gas and oil, is pleased to provide the following production and trading update.
The acquisition of assets from Titan Energy ("Titan") announced in June is now wholly completed with the closing of the remaining assets on 29 September 2017. The Company has largely concluded the initial integration of the Titan assets into its operations, and continues its efforts to optimize the asset performance while reducing costs. The Company now operates approximately 17,000 wells.
The Company continues to improve operating efficiencies, driving costs lower and increasing gross margins. Since completing the Titan acquisition, operating costs have been reduced 8% from $7.73/Boe reported for the first six months of 2017 to $7.14/Boe in September 2017. In turn, Adjusted EBITDA margins have improved from 35% for the first six months of 2017 to 44% in September 2017.
Overall trading remains in line with current market forecasts and the Board anticipates that it will provide a further market update at the year end.
This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.
Diversified Gas & Oil PLC Rusty Hutson Jr., Chief Executive Officer Brad Gray, Finance Director and Chief Operating Officer Eric Williams, Chief Financial Officer www.diversifiedgasandoil.com
| + 1 (205) 408 0909
|
Smith & Williamson Corporate Finance Limited (Nominated Adviser & Joint Broker) Russell Cook Katy Birkin
| +44 20 7131 4000
|
Mirabaud Securities LLP (Joint Broker) Peter Krens Edward Haig-Thomas
| +44 20 3167 7221
|
Buchanan (Financial Public Relations) Ben Romney Chris Judd Henry Wilson
| +44 20 7466 5000
|