Independent energy company Evolution Petroleum's shares were down 11.2% at $3.40 in after-hours trading as it seeks an equity raise for an acquisition.
Houston, Texas-based Evolution Petroleum has commenced a stock offering; the deal size was not disclosed.
The company intends to use net offering proceeds to fund a $16 million purchase of oil and natural gas mineral and royalty interests located in the Permian Basin, and for general corporate purposes, including repayment of debt under its credit facility.
Roth Capital is sole bookrunner.
With about 35.9 million shares outstanding, the company has a market cap of nearly $140 million.
The stock closed up 0.3% at $3.83 on Tuesday, and is up 8% year to date.
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