Diversified Gas & Oil PLC Trading Statement (4413X)
August 10 2018 - 1:10AM
UK Regulatory
TIDMDGOC
RNS Number : 4413X
Diversified Gas & Oil PLC
10 August 2018
10 August 2018
DIVERSIFIED GAS & OIL PLC
("DGO" or the "Company")
Pre-close Trading Update
Diversified Gas & Oil PLC (AIM: DGOC), a US based gas and
oil producer with a focus on the Appalachian Basin, is pleased to
provide the following operating activities and trading update in
respect of its half year financials to 30 June 2018.
The Company's integration of its most recently acquired assets
from EQT Corporation is progressing as planned. The Board is
pleased to confirm trading is in line with management forecasts and
that it expects the results for the year to December 2018 to be in
line with current market forecasts.
The Company expects to announce its half year results to 30 June
2018 on or before 12 September 2018.
Update on Decommissioning Activities
DGO is committed to be a good steward of the environment in
which it operates, and earlier this year created a department
within the Company to proactively manage its routine
decommissioning efforts. As is customary within the industry, DGO
jointly develops decommissioning programs with regulators within
the states in which it operates. For example, DGO has a formal,
five-year agreement with the state of Ohio to plug up to 18 wells
per year (or a total of 90 wells over the five-year period), with
no less than 14 wells plugged in any one year.
Specifically as it relates to its decommissioning activities
within the state of Pennsylvania, the Company continues to engage
in productive conversations with its Department of Environmental
Protection. DGO is confident that it will reach a mutually
agreeable resolution in the near future. As a procedural matter and
within the required regulatory timeframe, the Company will appeal
Pennsylvania's recent consent order.
The Company also budgets annually for the number of wells it
expects to plug, and it designs its plugging program to comply with
all agreements made with the states within which it operates. When
no formal agreements exist, the Company estimates the number of
wells it will plug based on need or operating constraints, which
include weather, availability of capable and qualified contractors
and similar factors. The Company's average per-well decommissioning
cost year-to-date approximates $20,600, which DGO expects to trend
lower as it continues to reduce reliance on third-party contractors
and increases the utilization of its internal resources.
The Company does not expect to increase its planned plugging
activities and that it has made adequate provision in respect of
its decommissioning liabilities. Although the Company does not
expect its planned plugging activities to increase, the Company
does not foresee this as having a significant impact on its
consolidated free cash flows.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Diversified Gas & Oil PLC
Rusty Hutson Jr., Chief Executive Officer
Brad Gray, Chief Operating Officer and
Finance Director
Eric Williams, Chief Financial Officer
www.dgoc.com + 1 (205) 408 0909
Smith & Williamson Corporate Finance
Limited
(Nominated Adviser)
Russell Cook
Katy Birkin
Ben Jeynes +44 (0)20 7131 4000
Mirabaud Securities Limited
(Joint Broker)
Peter Krens
Edward Haig-Thomas +44 (0)20 3167 7221
Stifel Nicolaus Europe Limited
(Joint Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0)20 7710 7600
Stifel Nicolaus & Company, Incorporated
(US Financial Adviser)
Sameer Parasnis
Chris Gibson +1 713 237 4516
Buchanan
(Financial Public Relations)
Ben Romney
Chris Judd
Henry Wilson
dgo@buchanan.uk.com +44 20 7466 5000
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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