Diversified Gas & Oil PLC’s $50 Million Initial Public Offering

Watson Farley & Williams has advised Diversified Gas & Oil PLC on its admission to trading on AIM and related placing to raise US$50 Million.

This represents the largest oil and gas flotation in London since oil prices started to fall in mid-2014.

This listing takes DGO’s market capitalisation to US$86.4m (£69.17m), with shares in the company being priced at 65p. DGO opted to list in London and raise capital on AIM to expand because the US has no comparable junior market with a focus on growth companies.

Founded in 2001, Alabama-headquartered DGO operates 7,500 oil and gas wells producing 4,700 barrels of oil equivalent per day in the Appalachian Basin spanning the states of Ohio, Pennsylvania and West Virginia. The company has grown dramatically over the past two years, utilising funds raised in a previous listing of bonds on NEX in London in June 2015 to acquire additional conventional low-risk oil and gas assets from larger US production and exploration companies who are increasingly focusing on shale production.

The WFW London Corporate team advising DGO was led by Partner Martin Thomas (Picture), assisted by Senior Associates Danny Heathwood and Jenny Hodges, Associate Richard Pyke and Trainees Alex Green and Alex Clark.

Involved fees earner: Martin Thomas – Watson Farley & Williams; Danny Heathwood – Watson Farley & Williams; Jenny Hodges – Watson Farley & Williams; Richard Pyke – Watson Farley & Williams;

Law Firms: Watson Farley & Williams;

Clients: Diversified Gas & Oil PLC;