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DGOC going up through the gears

The US-based driller is drumming up institutional support for its proposed Titan Energy deal
June 12, 2017

At the time of writing, shares in Diversified Gas & Oil (DGOC) remained suspended as the company outlines its investment case to potential creditors following its decision to acquire various assets from Titan Energy.

IC TIP: Buy at 64.5p

The Titan deal promises to expand the US-based driller's reserve base and propel production towards 11,000 barrels of oil equivalent per day (boepd), an inferred increase of 161 per cent from existing levels. The deal, once completed, will obviously change the scale of its operations, but there was actually a marked step-up in revenue and production following the acquisitions of Eclipse and Seneca in 2016. Contributions from the 3,500 conventional wells acquired with the deals saw DGOC exit 2016 with gross production of 26.5m cubic feet equivalent per day, a 120 per cent increase year on year.

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