ENR team advises on largest ever AIM oil and gas acquisition
International law firm Fieldfisher has advised on the largest acquisition by an oil and gas company completed to date on London's Alternative Investment Market (AIM).
The deal saw AIM-listed Diversified Gas & Oil PLC (DGO), a US-based gas and oil producer, acquire a network of producing assets in the Appalachian Basin, US, covering around 2.5 million acres (10,117km2) containing 11,350 wells, for approximately $575 million.
The acquisition will be funded by a combination of a new debt facility of up to $1 billion and a placing of new Ordinary Shares to raise proceeds of $240 million, net of placing costs.
A team led by Corporate Partner, Anthony Brockbank, supported by Associate, Owain Davies and Paralegal, Jamal Moursy, acted for DGO's nominated adviser, Smith & Williamson and joint brokers Mirabaud Securities Limited and Stifel Nicolaus Europe Limited in connection with the acquisition and associated fundraising.
Due to the size of the acquisition assets relative to the company, the acquisition constitutes a reverse takeover of DGO under Rule 14 of the AIM Rules for Companies.
DGO announced its intention to acquire the assets on 14 June and finalised terms on 27 June. On completion of the transaction, DGO will become one of the top gas and oil producers on the London Stock Exchange, with net production more than doubling to approximately 58,381 boepd.
Commenting on the transaction, Anthony Brockbank, Partner, Corporate at Fieldfisher, said:
“This is the fourth DGO transaction we have advised on since the company completed its Initial Public Offering in February 2017.
“The deal, which makes DGO one of the largest companies trading on AIM today, is a strong indicator that oil and gas M&A activity on the London stock market continues to thrive, boosted by a robust oil price environment, following a relatively lacklustre period for deal-making since the oil price crash in mid-2014.”