Ring Energy Inc. (AMEX: REI) said Feb. 23 it priced a $71 million equity offering aimed at funding its 2018 budget.
The underwritten public offering includes roughly 5.4 million shares of Ring's common stock with an 804,000-share greenshoe at $14 per share, according to the company press release.
Ring said it intends to use proceeds from the offering to fund its 2018 capex and for other general corporate purposes. The Midland, Texas-based company is focused on oil and gas exploration, development and production in the Permian Basin.
On Feb. 20, Ring announced a preliminary 2018 budget of roughly $150 million, the majority of which will be allocated to the company's Central Basin Platform asset. Management estimates that under the current two rig program, the company will drill about 60 new horizontal wells in 2018 on the asset.
SunTrust Robinson Humphrey Inc. and Seaport Global Securities LLC are joint book-running managers in the offering. Capital One Securities Inc., Euro Pacific Capital Inc., Imperial Capital LLC, Ladenburg Thalmann & Co. Inc., Northland Securities Inc. and Roth Capital Partners are co-managers.
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