Diversified Gas & Oil’s executive chairman Robert Post will continue in the role but in a non-executive capacity from now on.
The change was announced ahead of today’s annual general meeting as part of a board reorganisation with senior appointments to operating and corporate functions to enhance operating oversight and execution.
A statement ahead of the AGM said: “Since completing the acquisition of assets from Titan Energy (Titan) in June, DGO has made considerable progress in integrating the assets into the enlarged group and made the necessary structural adjustments to the team to ensure that DGO maximises the value of the acquisition.
“Bob Cayton, who joined from Titan, has been appointed senior vice- president of operations with responsibility for the management of all DGO’s Appalachian field operations.
“Bob and his team will oversee implementation of new management processes and reporting frameworks to further improve performance management, drive operating efficiencies and increase output across our portfolio.
“The Company has created the role of senior vice-president of environment, health & safety (EH&S), a role commensurate with operations the scale of DGO’s.
“John (Jack) Crooks has been appointed to the role to oversee a team of five experienced professionals that will continue to deliver on DGO’s commitment to safety, regulatory compliance and environmental stewardship.
“The management team also welcomes Eric M. Williams CPA as chief financial officer, whose appointment was announced on 7 July.
“Eric will support finance director, Brad Gray, in his responsibilities for accounting operations, financial reporting and investor relations communications.
“Eric joins DGO from Callon Petroleum (NYSE: CPE), where he spent the last seven years enhancing the finance and investor relations functions of the company through a period of intense growth. Eric qualified as an accountant from PWC.
“To ensure the smooth integration of the entire portfolio, DGO has engaged the consulting expertise of Opportune, an energy industry consulting firm based in Houston, who are working with the DGO management through the duration of the process.
“Their invaluable experience in integration events is adding rigour and guidance to deliver a timely transition into the new enlarged business. As previously guided, certain assets associated with the Titan Acquisition that are held within a public partnership structure, are anticipated to be transferred to the Company after on or before 30 September. Completion of these assets remains on track and will take DGO’s gross production to circa 18,300 boepd (11,000 boepd net).
“Pleasingly, the underlying business has continued to perform in line with expectations. DGO continues to deliver on the Company’s strategic objective to further reduce its already low production costs through well optimisation, as well as the improvement of well assessment and maintenance programmes.
“DGO achieved an operating cost per flowing barrel of oil equivalent (BOE) of $8.26 in the fourth quarter of FY16 and anticipates operating costs to fall below $6 per BOE once the integration of Titan assets is fully completed. As the industry experiences significant and continued downward pricing pressure across the value chain, the DGO business model and strategy for extracting additional value from its assets provides robust protection in a challenging market.” Post – who remains the joint largest shareholder, alongside founder and chief executive Rusty Hutson Jr – said: “I am immensely proud of what we have achieved with DGO since I joined the company in 2005.
“DGO has established itself as one of the largest conventional players in the Appalachian Basin and, subsequent to our admission to AIM in February, we have become one of the largest and one of the lowest cost producers on AIM.
“Under the leadership of Rusty Hutson, the Company is extremely well managed by a team with the requisite strength, depth and skills to maintain this impressive momentum along the growth path.
“As such, I have decided that it is the appropriate time to relinquish my executive duties and I look forward to working alongside the Board in my new capacity as Non-executive Chairman.”
At 9:22am: (LON:DGOC) Diversified Gas Oil Plc share price was +1p at 67.25p
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