June 14, 2018 / 10:17 AM / a year ago

Diversified Gas to buy U.S. oil, gas assets for about $575 million

(Reuters) - Diversified Gas & Oil Plc (DGOC.L) said on Thursday it planned to buy oil and gas producing assets in the Appalachian Basin for about $575 million, as it bets on the U.S. shale gas boom.

The company did not disclose the identity of the seller, but said the deal would be a reverse takeover.

The assets, which include about 11,350 wells with current net total gas production of 32,100 barrels of oil equivalent (boe) per day, would more than double its net daily production, the company said.

London-listed Diversified Gas, which has a market value of about $300 million, said it would fund the deal through a new $1 billion debt facility and a share sale worth $225 million.

The company said the deal is expected to immediately add to earnings and that it would more than double its proven developed producing reserves to 393 mmboe.

Reporting by Muvija M in Bengaluru; Editing by Shounak Dasgupta

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