JACKSON, Miss. (AP) - A private equity firm will invest up to $400 million to support efforts by Houston-based Halcón Resources Corp to drill for oil on the 314,000 acres that Halcón has leased in the Tuscaloosa Marine Shale of southwest Mississippi and southeast Louisiana.
Halcón said Monday that it would sell $150 million in preferred stock to Apollo Global Management, agreeing to pay Apollo 8 percent yearly interest. Apollo will also get a 4 percent royalty on up to 75 wells that Halcón plans to drill. Apollo could buy up to $250 million more in preferred shares.
Halcón also says it has acquired rights to develop an oil handling terminal at Natchez.
The money could spur development in the fledgling oil region, where wells have shown more consistent productivity in recent months.