GeoResources (GEOI)
Posted: Mon Jan 10, 2011 4:45 pm
I have no problem with this since the proceeds are being used to pay down debt and accelerate development drilling / increasing oil production. Since GEOI has only 20.5 million shares outstanding, this is a fairly significant dilution. I will factor it into my forecast model by this weekend. - Dan
HOUSTON--(BUSINESS WIRE)-- GeoResources, Inc., (NASDAQ:GEOI - News), today announced that it and certain selling shareholders intend to offer, subject to market and other conditions, 4,700,000 shares of common stock, of which 4,000,000 shares would be sold by GeoResources and 700,000 shares would be sold by the selling shareholders, in an underwritten public offering. In connection with the offering, the Company and the selling shareholders expect to grant the underwriters a 30-day option to purchase up to an additional 705,000 shares of common stock on a pro-rata basis.
GeoResources expects to utilize the net proceeds it receives from the offering to pay down the $87.0 million outstanding balance under its credit agreement. GeoResources expects to use any of its remaining net proceeds from the offering along with its cash flow and credit facility availability, primarily to fund its drilling and development expenditures on its acreage in the Bakken Trend in North Dakota and Montana, and its acreage in the Eagle Ford Trend in Texas, and for incremental leasehold acquisitions and general corporate purposes.
HOUSTON--(BUSINESS WIRE)-- GeoResources, Inc., (NASDAQ:GEOI - News), today announced that it and certain selling shareholders intend to offer, subject to market and other conditions, 4,700,000 shares of common stock, of which 4,000,000 shares would be sold by GeoResources and 700,000 shares would be sold by the selling shareholders, in an underwritten public offering. In connection with the offering, the Company and the selling shareholders expect to grant the underwriters a 30-day option to purchase up to an additional 705,000 shares of common stock on a pro-rata basis.
GeoResources expects to utilize the net proceeds it receives from the offering to pay down the $87.0 million outstanding balance under its credit agreement. GeoResources expects to use any of its remaining net proceeds from the offering along with its cash flow and credit facility availability, primarily to fund its drilling and development expenditures on its acreage in the Bakken Trend in North Dakota and Montana, and its acreage in the Eagle Ford Trend in Texas, and for incremental leasehold acquisitions and general corporate purposes.
