Source - SMW
Diversified Gas & Oil has resumed trading on AIM after finalising the agreement to acquire certain gas and oil assets of Titan Energy, which was announced on 5 May. 

The acquisition has been funded through a $110m loan facility and a placing to raise $35m.

Chief executive Rusty Hutson said: "We are delighted to have successfully raised the funds required to close out this transaction. 

"We are grateful to the existing and new shareholders who participated in the Placing, and see the strong demand witnessed throughout the process as validation of our growth strategy and business model.

"The impact of this acquisition is truly transformational for Diversified Gas and Oil. 

"It cements our position as a leading conventional player in the Appalachian Basin and materially enhances our low-cost production and predictable cash flow, both of which underpin our ability to return money to shareholders in the form of a bi-annual dividend. 

"Our near-term focus will be on the full integration of these newly acquired assets and identification of the areas in which we believe we can reduce operating costs. 

"We anticipate that the synergies and streamlining of our enhanced operations will enable us to lower our operating costs below the level of $8.26 boe achieved in 2016, making our operations particularly resilient in a low commodity price environment and well positioned to benefit from any price increases, especially for natural gas which represents the large majority of our production."

The suspension of trading on AIM was lifted at 7.30 a.m. today.