Arena Resources, Inc. has announced that it has commenced a public offering of 2,175,000 shares of common stock.
On May 28, 2008, the closing price of the company’s common shares on the New York Stock Exchange was $51.92 per share. The common shares are being offered pursuant to the company’s effective shelf registration statement.
The company expects to close the sale of the common shares on June 3, 2008, subject to customary closing conditions. The company has granted the underwriters a 30-day option to purchase up to 326,250 additional shares to cover over-allotments.
The net proceeds of the offering are expected to be used to repay existing debt and for capital expenditures, which will include drilling and development of our properties and possible acquisitions of additional properties.