By Sheri Kasprzak
New York, March 31 - The Exploration Co. has secured agreements for a $31.5 million private placement of stock.
A group of institutions agreed to buy 3 million shares at $10.50 each to fund drilling and development activities. The price per share is a 15.5% discount to the company's closing stock price of $12.43 on March 30.
The funds will allow the company to increase drilling at its Glen Rose Porosity and San Miguel tar sand plays in the Maverick Basin, fund drilling on its Marfa Basin property in Texas and fund the acquisition of a drilling rig. The remainder will be used for general corporate purposes.
A.G. Edwards, Inc. and Harris Nesbitt Corp. were the placement agents for the deal.
The company will have 32.9 million outstanding shares when the deal closes.
Located in San Antonio, The Exploration Co. is an oil and natural gas exploration and development company.
| Issuer: | The Exploration Co.
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| Issue: | Stock
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| Amount: | $31.5 million
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| Shares: | 3 million
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| Price: | $10.50
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| Warrants: | No
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| Placement agent: | A.G. Edwards, Inc. and Harris Nesbitt Corp.
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| Announcement date: | March 31
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| Stock symbol: | Nasdaq: TXCO
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| Stock price: | $12.43 at close March 30
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