Delta Petroleum raising $56Madmin
Delta Petroleum Corp. on Thursday said it would raise $56.4 million from the sale of stock.
The Denver oil and gas exploration company (NASDAQ: DPTR) said it will sell 2.77 million shares of stock at $20.98 a share. Delta said its net proceeds would be $56.4 million after deducting underwriting discounts, commissions and estimated offering expenses.
Delta Petroleum, which expects its exploration and development expenses for the year will range from $175 million to $225 million, said the proceeds from the offering will be used to repay a $25 million term loan and reduce debt under its credit facility. The company intends to redraw some or all of the amounts paid down on its credit facility to fund exploration and development costs as well as for working capital and general corporate purposes.