Diversified Gas and Oil PLC acquires Alliance Petroleum Corporation
US based gas and oil producer, Diversified Gas and Oil PLC acquires Alliance Petroleum Corporation. The company has also acquired certain producing gas and oil assets from a major NYSE listed energy company (“the Appalachian Vendor”). The wells of both Alliance Petroleum and the Appalachian Vendor are close to the Company’s existing operations in the Appalachian Basin in the eastern United States, principally in Pennsylvania and West Virginia, with some wells in Ohio. The acquisition pegged at US$95 million (£66.9 million) and the cash consideration for the Appalachian Gas Acquisition is US$85.0 million (£59.9 million).
On Completion of the Acquisitions, the Company anticipates that its total net working interest production will increase by 173 per cent. to approximately 28,133 boed, and its net working interest PDP reserves will grow by 217 per cent to 173.2 MMboe, resulting in an annualised EBITDA of US$70-75 million.