Emerald Oil Inc (NYSE: EOX) spiked sharply Wednesday on news that it abandoned a public offering, citing market conditions and dilution concerns.
The Denver-based company traded recently at $6.70, up $1.52.
Emerald, whose shares are off more than 70 percent year to date, also put on ice plans to acquire 10,746 acres in the Delaware Basin from undisclosed sellers for $75.2 million in cash.
Emerald on May 18 launched a $150 million public offering to fund the acquisition, as well as to repay debt and for general corporate purposes.
Underwriters had obtained a 30-day option to acquire additional shares in the now defunct offering worth up to $22.5 million.
The company, which raised $26 million in a February stock offering, reiterated plans Wednesday for a $65 million capital budget for 2015, including the $42 million it's already spent.
The budget is designed to "hold its acreage position" while continuing higher production compared with 2014, the company said.
Emerald disclosed earlier this month that it obtained expanded debt covenants and a $200 million borrowing base in an amendment to its senior secured credit facility.
In December, Emerald released two of its three operated rigs, citing lower commodity prices.
With the recently completed spring borrowing base redetermination and easing of debt covenants, Emerald will continue developing its Williston Basin leasehold position based upon original plans.
With current upper-teens well returns the Company remains committed to completing its 2015 capital expenditures program in a financially conservative manner designed to hold its acreage position while maintaining year-over-year growth in production. The Company reiterates the previously announced 2015 guidance reflecting a $65 million capex budget, of which $42 million has been spent year to date.
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