Up to $400M could spur oil drilling by Houston-based corp

Up to $400M could spur oil drilling by Houston-based corp

Credit: Getty Images

WILLISTON, ND - JULY 25: A construction worker specializing in pipe-laying sandblasts a section of pipeline on July 25, 2013 outside Watford City, North Dakota. North Dakota is currently experiencing an oil boom, creating thousands of jobs throughout the state and billions of dollars in new state revenue. Local two-lane roads that are used to access drill sites have taken a beating due to the unprecedented amount of traffic. Pipelines are being constructed across the state in part to streamline the movement of oil from drill sites to train depots and oil refineries. (Photo by Andrew Burton/Getty Images)

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by ASSOCIATED PRESS

khou.com

Posted on June 9, 2014 at 2:19 PM

Updated Monday, Jun 9 at 2:19 PM

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.

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