Diversified Gas & Oil has floated on AIM with a market capitalisation of $86.4m following a placing of 61,000,000 new ordinary shares at 65p apiece to raise $50m.
The funds raised will be used for the repurchase of bonds, repayment of existing debt facilities, costs of admission and working capital requirements of the group.
Chief executive Rusty Hutson Jr said: “We are delighted to be joining AIM and thank our existing and new shareholders for their support in the placing.
“DGO has grown exponentially since inception in 2001 and we believe that our admission to AIM will provide the company with a platform from which we can accelerate this growth trajectory.
“We offer a compelling proposition given our extensive acreage position in the Appalachian Basin, our low cost production, our proven track record for value creation and our commitment to pay a dividend to our shareholders.
“We have a well-defined growth strategy based on proven and low-risk operations and the opportunity for complementary acquisitions that we are uniquely positioned to execute on.
“We look forward to communicating on our progress as we begin our life as an AIM quoted company.”
At 9:32am: (LON:DGOC) share price was +60p at 60p
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