Evolution Petroleum Corporation (NYSE American: EPM) has announced the pricing of its underwritten public offering of 3.7 million shares of common stock at $3.25 per share. The offering is expected to generate gross proceeds of approximately $12.0 million before underwriting discounts, commissions, and offering expenses. The company has also granted the underwriters a 30-day option to purchase up to an additional 555,000 shares.
The net proceeds from the offering are intended to fund a portion of Evolution's previously announced acquisition of oil and natural gas mineral and royalty interests in the Permian Basin, as well as for general corporate purposes. This strategic move underscores Evolution's commitment to expanding its presence in one of the most prolific oil and gas regions in the United States.
The offering is being managed by Roth Capital Partners as sole book-running manager, with Northland Capital Markets serving as co-manager and A.G.P./Alliance Global Partners acting as financial advisor. The company's ability to secure this financing reflects investor confidence in its growth strategy and the quality of its assets.
Evolution Petroleum is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. This offering is a key step in advancing that strategy.
The Permian Basin acquisition is particularly significant given the region's status as a leading source of U.S. oil production. By adding mineral and royalty interests, Evolution can benefit from ongoing development by operators without bearing the full cost of drilling and completion. This approach aligns with the company's focus on generating sustainable returns while managing risk.
For more information about Evolution Petroleum, visit https://www.evolutionpetroleum.com/. The full press release can be viewed at https://ibn.fm/LxWum.
