Arena Resources Receives $10 Million in Private Investment Funds
Arena Resources Inc.
Arena Resources Inc.
(AMEX: ARD) has
received a $10 million private equity investment from a small group of
investors, some of whom are existing shareholders. The group of
investors purchased 970,874 restricted shares of the company's common
stock at a price of $10.30 per share, a 7.7% discount to the 30 day
average closing price of the company's common stock immediately prior
to the term sheet agreement date. The shares were placed directly by
the company with net proceeds after expenses estimated to be $9.8
million. The funds will be used to eliminate the remaining $5 million
outstanding long term debt on the company's bank credit facility and
to fund an increase in the 2005 capital expenditure budget by
approximately $4 million to $18.5 million.
Tim Rochford, Arena's president and CEO, commented, "The receipt of these funds will allow us to increase our capital expenditure budget for the remainder of the year. Specifically, on our Fuhrman-Mascho property we will increase the number of development wells to be drilled from 27 to 33, as well as increase the number of re-fracs from 12 to 20. It also allows us to pay off the remaining debt on our $50 million bank credit facility, giving us an immediate $35 million to use for future development or acquisition opportunities."
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