Diversified Gas & Oil’s $84.2million of a tranche of Titan Energy’s assets is set to go to shareholders to approve tomorrow, after the two firms finalized terms.
The deal includes certain producing gas and oil wells, close to DGO’s existing operations in the Appalachian Basin in the eastern United States, principally in the states of Ohio, Pennsylvania, southern New York and northeast Tennessee.
Daily gas production from the Titan Assets is approximately 12,500 gross boepd (6,550 net boepd) and oil production is 380 gross bopd (266 net bopd). The Acquisition will more than triple DGO’s gross gas production to approximately 17,367 boepd, and will increase gross oil production by 69% to approximately 930 bopd. Overall gross production will increase from approximately 5,400 boe to 18,300 boe.
The Titan Assets will be immediately accretive to cash and earnings, according to a company spokesperson.
The deal will be funded by a new $110million Senior Secured Loan Facility and proposed $35million placing, which includes 39.3 million new ordinary shares at 70p per share.
