DALLAS, TX, Sept. 3, 2013 (GLOBE NEWSWIRE) -- Red Mountain Resources, Inc. (OTCQB : RDMP.QB) (the "Company") announced today that it has closed public offerings of 6,428,572 shares of common stock and 476,687 units, including units issued in cancellation of outstanding indebtedness. Each unit consists of one share of the Company's 10.0% Series A Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock") and one warrant to acquire 25 shares of common stock at an exercise price of $1.00 per share. The units were not issued. Rather, the shares of Series A Preferred Stock and the warrants immediately separated and were issued separately.
The Company sold the units at a price to the public of $22.50 per unit and sold the common stock at a price to the public of $0.70 per share. The Company raised gross cash proceeds from the offerings of $13.0 million. In addition, the Company sold 100,002 units in cancellation of $2.3 million of the Company's outstanding indebtedness.
The Company intends to use the net proceeds from the offerings for general corporate purposes, including to fund drilling and development of its properties and to repay outstanding indebtedness.
The following is the Company's current capital expenditure plan for fiscal year 2014. The Company's capital expenditure plan is subject to change.
| Prospect Area | Gross Wells | Net Wells | CAPEX (in millions) |
Percent |
| Tom Tom Workovers & New Wells | 36 | 31.6 | $14.0 | 43% |
| Cowden | 3 | 3 | $2.5 | 6% |
| Madera | 5 | 2.5 | $18.5 | 47% |
| Shafter Lake | 1 | 0.6 | $0.5 | 1% |
| Non-Operated | 10 | 0.4 | $1.0 | 3% |
| TOTAL | 55 | 38.1 | $39.5 | 100% |
About Red Mountain Resources, Inc.
Red Mountain Resources, Inc. is a Dallas-based growth-oriented
energy company engaged in the acquisition, development and
exploration of oil and natural gas properties in established basins
with demonstrable prolific producing zones. Currently, the
Company has established acreage positions and production in the
Permian Basin of West Texas and Southeast New Mexico and the
onshore Gulf Coast of Texas. Additionally, the Company has an
established and growing acreage position in Kansas. For more
information, please go to www.RedMountainResources.com.
Safe Harbor Statement
This press release contains forward-looking information, including
information regarding the expected use of proceeds. Readers
are cautioned not to place undue reliance on any such
forward-looking statements, each of which speaks only as of the
date made. Such statements are subject to certain risks and
uncertainties which are disclosed in the Company's reports filed
with the Securities and Exchange Commission (the "SEC"), including
its Form 10-K for the fiscal year ended May 31, 2012, its Form 10-Q
for the quarter ended February 28, 2013 and its other filings with
the SEC. These risks and uncertainties could cause actual results
to differ materially from those currently anticipated or
projected.
We may use words such as "anticipates," "believes," "expects," "intends," "will," "should," "may" and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. We do not undertake to update our forward-looking statements unless required by law.
Contact
Red Mountain Resources, Inc.
2515 McKinney Ave., Suite 900
Dallas, Texas 75201
Attention: Alan Barksdale, Chief Executive Officer
Telephone No.: (214) 871-0400