Prairie Operating Stock Slips After-Hours On Pricing $38.5M Stock Offering
The oil producer intends to use proceeds from the offering to fund the oil and gas asset purchase deal with Bayswater.
FollowPrairie Operating (PROP) stock fell 17.1% in extended trading on Monday after the company priced its $38.5 million stock offering at $4.50 per share.
The offer price implies a 23.2% discount to the stock’s last closing price.
The company said the underwriters have a 30-day option to buy up to an aggregate value of $5.8 million of additional shares.
Prairie said it intends to use the net proceeds from the stock offering alongside the previously announced concurrent registered offering of 150,000 shares of new Series F convertible preferred stock and certain warrants to fund a portion of its $600 million deal for certain oil and gas assets of Bayswater.
The Houston-based oil producer said it would use any remaining proceeds to buy back its shares and for other general corporate purposes, which may include its development and drilling program.
Citigroup is acting as lead book-running manager for the common stock offering, the company said.
Prairie agreed to buy the Bayswater assets in February to bolster its presence in the Denver-Julesburg Basin. The deal boosted the company’s land holdings to 54,000 net acres and provided about 10 years of drilling inventory.
It also lifted its 2025 production forecast to between 29,000 and 31,000 barrels of oil equivalent per day.
Earlier in March, the company named insider Gregory Patton as its chief financial officer, effective April 1.
One retail trader doubted whether the stock would remain at $4.50.
Prairie Operating shares have fallen 15.3% year-to-date.
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