US: Diversified Gas and Oil announces conditional acquisition in new regional focus area
03 May 2021
$135 million (gross) conditional acquisition of certain
Cotton Valley upstream assets and related facilities primarily in the state of Louisiana from
Indigo Minerals and an operations and trading update for the quarter ended 31 March 2021.
The Acquisition represents the first for the Company in its newly identified Central Regional Focus Area ( RFA ) where it expects to replicate its proven business model on an expanded opportunity set:
Acquisition Highlights
~2.9x multiple on ~$40MM of Adjusted EBITDA (Hedged)(a) before anticipated synergies
13% accretive to the Company s 2020 Adjusted EBITDA(b)
PV10 ~$175MM as of 1 March 2021 effective date and based on 16 April 2021 NYMEX strip price
Follow Jamie on:
Proactive Oil & Gas highlights: DGOC, 88 Energy, Tullow, Mosman, ADM Energy, Canadian Overseas Petroleum, Jersey, United Oil & Gas
It was another active week in the junior oil and gas sector.
Diversified Gas & Oil PLC (LON:DGOC) acquired a package of assets in Louisiana, marking its first deal in a newly identified ‘central’ regional focus area (RFA). The company is paying US$135mln for upstream assets and related facilities from Indigo Minerals LLC. The package, referred to as Cotton Valley, includes some 16,000 barrels oil equivalent per day (boepd) of production across 780 net operated wells.
It is host to around 50mln barrels of proved-developed-producing (PDP) reserves. And the company highlighted that the operations benefit from Gulf Coast pricing, which the company noted means higher realisations.
30 April 2021 | 08:02am
StockMarketWire.com - Oil and gas company Diversified Gas & Oil said it had conditionally acquired certain Cotton Valley upstream assets and related facilities primarily in the state of Louisiana for $135 million.
The purchase and sale agreement with Indigo was for 780 net operated wells producing about 16 MBoepd.
The acquisition provided strategic entry into prolific, gas-producing Cotton Valley/Haynesville area, the company said. The acquisition will add about 50 MMBoe (~305 Bcfe) in PDP reserves,[and] DGO expects to close the transaction in the latter half of May 2021 following its customary diligence, reviews and approvals, it added.
The company also provided a first-quarter trading update, with adjusted average net daily production at 105 MBoepd.
A
Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient: 1. Obtains access to the information in a personal capacity; 2. Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services; 3. Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body; 4. Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
30 April 2021 | 08:33am
StockMarketWire.com - The FTSE 100 opened up slightly, rising by 22 points as investors digested the latest quarterly results from blue chips including AstraZeneca and Barclays.
High-street bank Barclays reported a sharp rise in first-quarter profit as materially lower credit impairment charges offset a fall in income. For the three months through March, pre-tax profit jumped to a record £2.4 billion from £0.9 billion, while income slipped 6% to £5.9 billion year-on-year. However, its share price slipped in morning trading, down over 7% to 175.18p.
Packaging firm Smurfit Kappa has revealed that corrugated volume growth in the first quarter was up approximately 7% in both Europe and the Americas, driving underlying revenue growth of 6% to €2,269 million (£1,972 million). It opened today up over 100 points to £36.71 per share.