E&P Riley Exploration Permian agreed to buy acreage in New Mexico from an undisclosed seller and has launched a stock offering to pay for the deal, according to regulatory filings.
Riley Permian said it entered into the purchase and sale agreement on March 22 to buy 12,500 net acres in Eddy County. The company will pay for the transaction in cash, but did not specify the purchase price, according to Securities and Exchange Commission (SEC) documents.
On April 4, the company launched an underwritten public offering of 2.1 million shares of its stock, with proceeds from the offering primarily to be used for the acquisition. Any remaining balance will be paid through its revolving credit facility, the company said in an April 4 press release.
At the time the stock offering was filed, the last reported price of the stock was $33.88. At that price, the shares would fetch about $71.1 million.
The stock offering consists of 700,000 shares offered by Riley Permian and 1.4 million shares held by certain company stockholders. The company and the selling stockholders intend to grant the underwriters a 30-day option to purchase up to 315,000 additional shares of common stock.
Riley Permian anticipates closing the acquisition in May, with an effective date of Dec. 1, 2023.
Truist Securities, Inc. and Roth Capital Partners are acting as joint book-running managers for the offering. Janney Montgomery Scott LLC and Tuohy Brothers Investment Research Inc. are acting as co-managers.
Recommended Reading
Sangomar FPSO Arrives Offshore Senegal
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.