NEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT CONSTITUTES AN OFFER TO SELL OR
    ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR ACQUIRE ANY
    SECURITIES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE
    UNLAWFUL AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR
    DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA,
    CANADA, JAPAN, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR ANY JURISDICTION IN
    WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL ("RESTRICTED
    JURISDICTION").

    31 January 2017

                               Diversified Gas & Oil plc                           

                         ("DGO", the "Company" or the "Group")                     

                 Results of Offers to Bondholders and Admission to AIM             

    Further to the announcement made on 19 December 2016, Diversified Gas & Oil
    PLC, a US based gas and oil producer, confirms the results of the offers made
    to bondholders of the Company ("Bondholders") which closed on 13 January 2017,
    conditional on the Company's proposed admission to the AIM Market of the London
    Stock Exchange ("Admission").

    Acceptances received by the Company under the Buyback Share Offer and the Cash
    Alternative Offer (as defined in the announcement dated 19 December 2016) are
    as follows:

                                Number of Bonds (£)           Percentage of Bonds
                                                                                 
    Buyback Share Offer                     198,000                          1.86
                                                                                 
    Cash Alternative                     10,345,244                         97.14
    Offer                                                                        
                                                                                 
    Outstanding Bonds                       106,640                          1.00
                                                                                 
                                         10,649,884                        100.00

    The Cash Alternative Offer will be funded from the proceeds of the placing on
    Admission. As a result of the Buyback Share Offer, 380,769 Bond Conversion
    Shares shall be issued on Admission. Given the level of acceptances received
    under the Buyback Share Offer, the Company has waived the condition contained
    within the Buyback Share Offer that any Bondholder accepting the Buyback Share
    Offer shall agree that they will only dispose of any interests in their Bond
    Conversion Shares for a period of 18 months following Admission through
    Mirabaud, in order to maintain an orderly market in the Ordinary Shares.

    Bondholders accepting the Buyback Share Offer or Cash Alternative Offer have
    been paid the interest payment due on the Bonds relating to the quarter ended
    31 December 2016, however, no interest will be paid to Bondholders accepting
    either the Buyback Share Offer or the Cash Alternative Offer in respect of
    future periods following 1 January 2017.

    For those Bondholders who accepted the Buyback Share Offer, the Company expects
    that share certificates will be sent by first class post at the risk of the
    shareholder within 10 business days of Admission.

    For those Bondholders who accepted the Cash Alternative Offer, cheques will be
    sent by first class post at the risk of the Bondholder, within 10 business days
    of Admission.

    It is intended that the 106,640 outstanding Bonds will be withdrawn from the
    NEX Exchange (formerly ISDX) upon Admission and no alternative arrangements for
    dealing or trading in the outstanding Bonds will be arranged by the Company.

    Application has been made to the London Stock Exchange for the Company's issued
    and to be issued Ordinary Shares to be admitted to trading on AIM. It is
    expected that Admission shall become effective and that dealings in the
    Company's Ordinary Shares, shall commence on AIM on 3 February 2017.

    The Directors of Diversified Gas & Oil PLC accept responsibility for this
    announcement.

    Diversified Gas & Oil PLC

    Rusty Hutson, Chief Executive Officer

    Brad Gray, Finance Director

    + 1 (205) 408 0909

    www.diversifiedgasandoil.com

    NEX Exchange Corporate Adviser:
    Alexander David Securities Limited

    David Scott - Corporate Finance

    James Dewhurst - Corporate Broking

    Telephone : +44 (0) 20 7448 9820

    http://www.ad-securities.com

    Smith & Williamson Corporate Finance Limited (Nominated Adviser & Joint Broker)

    Russell Cook

    Azhic Basirov

    Katy Birkin

    +44 20 7131 4000

    Mirabaud Securities LLP (Lead Broker)

    Peter Krens

    Edward Haig-Thomas

    +44 20 7878 3362

    Buchanan (Financial Public Relations)

    Ben Romney

    Bobby Morse

    Chris Judd

    +44 20 7466 5000

    FORWARD-LOOKING STATEMENTS

    This announcement contains forward looking statements, which have been made
    after due and careful enquiry and are based on the Directors' current
    expectations and assumptions and involve known and unknown risks and
    uncertainties that could cause actual results, performance or events to differ
    materially from those expressed or implied in such statements.  Forward-looking
    statements are sometimes identified by the use of forward-looking terminology
    such as "targets", "believes", "expects", "aims", "intends", "plans", "will",
    "may", "anticipates", "would", "could" or similar expressions or the negative
    thereof.  The Board believes that the expectations reflected in these
    statements are reasonable, but they may be affected by a number of variables
    which could cause actual results or trends to differ materially. These
    forward-looking statements speak only as of the date of this announcement. Save
    as required by law, each of the Group and Smith & Williamson expressly disclaim
    any obligation or undertaking to disseminate any updates or revisions to any
    forward-looking statements contained herein to reflect any change in the
    Group's expectations with regard thereto, any new information or any change in
    events, conditions or circumstances on which any such statements are based,
    unless required to do so by law or any appropriate regulatory authority. Given
    these uncertainties, prospective investors are cautioned not to place any undue
    reliance on such forward looking statements.

    Prior to making an investment decision in respect of the Ordinary Shares,
    prospective investors should consider carefully all of the information within
    the Admission Document. The Board believes the risks set out therein to be the
    most significant for potential investors. However, the risks listed do not
    necessarily comprise all those associated with an investment in the Company. In
    particular, the Group's performance may be affected by changes in market or
    economic conditions and in legal, regulatory and/or tax requirements.

    IMPORTANT NOTICE

    Neither the contents of the Company's website nor the contents of any website
    accessible from hyperlinks on the Company's website (or any other website) is
    incorporated into, or forms part of, this announcement.

    This announcement does not constitute, or form part of, a prospectus relating
    to the Company, nor does it constitute or contain any invitation or offer to
    any person, or any public offer, to subscribe for, purchase or otherwise
    acquire any shares in the Company or advise persons to do so in any
    jurisdiction, nor shall it, or any part of it form the basis of or be relied on
    in connection with any contract or as an inducement to enter into any contract
    or commitment with the Company.

    The content of this announcement has not been approved by an authorised person
    within the meaning of the Financial Services and Markets Act 2000 (as amended)
    ("FSMA").

    This announcement is not for publication or distribution, directly or
    indirectly, in or into the United States of America ("United States" or "US").
    This announcement is not an offer of securities for sale into the United
    States. The securities referred to herein have not been and will not be
    registered under the U.S. Securities Act of 1933, as amended (the "Securities
    Act"), and may not be offered or sold in the United States, except pursuant to
    an applicable exemption from registration. No public offering of securities is
    being made in the United States.

    This announcement is not for release, publication or distribution, directly or
    indirectly, in or into a Restricted Jurisdiction. This announcement and the
    information contained herein are not for release, publication or distribution,
    directly or indirectly, to persons in a Restricted Jurisdiction unless
    permitted pursuant to an exemption under the relevant local law or regulation
    in any such jurisdiction. This announcement has been issued by and is the sole
    responsibility of the Company.

    Smith & Williamson Corporate Finance Limited ("Smith & Williamson") is acting
    as nominated adviser and joint broker to the Company and Mirabaud Securities
    LLP ("Mirabaud") is acting as joint broker and no one else in connection with
    the proposed placing and admission to AIM ("Admission") and neither Smith &
    Williamson nor Mirabaud will regard any other person (whether or not a
    recipient of this announcement) as its client in relation to Admission nor will
    it be responsible to anyone other than the Company for providing the
    protections afforded to its clients or for providing advice in relation to
    Admission. Apart from the responsibilities and liabilities, if any, which may
    be imposed on Smith & Williamson or Mirabaud by FSMA or the regulatory regime
    established thereunder, neither Smith & Williamson nor Mirabaud accepts any
    responsibility whatsoever, and makes no representation or warranty, express or
    implied, for the contents of this announcement including its accuracy,
    completeness or verification or for any other statement made or purported to be
    made by it, or on behalf of it, the Company or any other person, in connection
    with the Company and the contents of this announcement respect, whether as to
    the past or the future. Smith & Williamson and Mirabaud accordingly disclaim
    all and any liability whatsoever, whether arising in tort, contract or
    otherwise (save as referred to above), which it might otherwise have in respect
    of Admission or contents of this announcement or any such statement.