PDC Energy (PETD) Proposes 3M Common Offering
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PDC Energy (Nasdaq: PETD) announced that they plan to offer 3 million shares of common stock.
PDC expects to grant the underwriters a 30-day option to purchase up to 450,000 additional shares of common stock to cover any over-allotments.
Proceeds will be used to fund an acquisition of additional assets in the Wolfberry Trend in the Permian Basin of West Texas, which is expected to close on or about November 19, 2010; its previously announced acquisitions of the 2004 and 2005 drilling partnerships; and other acquisitions and for general corporate purposes, including drilling capital expenditures associated with the development of the horizontal Niobrara oil play and in the Wolfberry oil trend and to fund refractures and recompletions on wells acquired from PDC's drilling partnerships. Pending such uses, PDC intends to apply the net proceeds from this offering and other proceeds to temporarily repay the entire outstanding amount under its credit facility, with the remaining balance being deposited in an interest bearing account and held as cash and cash equivalents until utilized as discussed above.
Wells Fargo Securities and BofA Merrill Lynch are acting as joint book-running managers for the common stock offering.
PDC expects to grant the underwriters a 30-day option to purchase up to 450,000 additional shares of common stock to cover any over-allotments.
Proceeds will be used to fund an acquisition of additional assets in the Wolfberry Trend in the Permian Basin of West Texas, which is expected to close on or about November 19, 2010; its previously announced acquisitions of the 2004 and 2005 drilling partnerships; and other acquisitions and for general corporate purposes, including drilling capital expenditures associated with the development of the horizontal Niobrara oil play and in the Wolfberry oil trend and to fund refractures and recompletions on wells acquired from PDC's drilling partnerships. Pending such uses, PDC intends to apply the net proceeds from this offering and other proceeds to temporarily repay the entire outstanding amount under its credit facility, with the remaining balance being deposited in an interest bearing account and held as cash and cash equivalents until utilized as discussed above.
Wells Fargo Securities and BofA Merrill Lynch are acting as joint book-running managers for the common stock offering.
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