Whiting Petroleum announced that its public offering of 8,000,000 shares of common stock was priced at $29.00 per share to the public.
Whiting expects the delivery of the shares to occur on February 4, 2009. Whiting has granted to the underwriters a 30-day option to purchase up to 1,200,000 additional shares of common stock at the same price per share solely to cover overallotments, if any.
Assuming no exercise of the overallotment option, Whiting expects to receive net proceeds from this offering of approximately $222.2 million after deducting underwriting discounts and commissions and estimated expenses of the offering. After using the net proceeds from the offering to temporarily reduce amounts outstanding under Whiting's credit facility, Whiting expects to use a portion of the proceeds from the offering to increase its 2009 base capital budget to develop incremental opportunities it has identified in the Northern and Central Rockies.
However, Whiting may allocate this portion of the proceeds as well as the balance of the proceeds from the offering to either further develop these incremental projects or to expand the projects in its previously announced 2009 base capital budget that indicate the highest return based on drilling results through the time of such allocation.
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