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
Red Mountain Resources, Inc. 2515 McKinney Ave., Suite 900 Dallas, Texas 75201 Attention: Alan Barksdale, Chief Executive Officer Telephone No.: (214) 871-0400
