Quest Resource Corporation reports public offering of common shares

Jul 03, 2008 (M2 EQUITYBITES via COMTEX) -- QRCP | Quote | Chart | News | PowerRating -- Quest Resource Corporation (NasdaqGM:QRCP) said on 2 July that the integrated E&P company has priced a follow-on public offering of 8,800,000 shares of its common stock at USD10.25 per share.

Additionally, the underwriters have been granted a 30-day over-allotment option to purchase up to a further 1,320,000 shares of its common stock.

The company expects to receive net proceeds from this offering of approximately USD84.2m (around USD97m, if the underwriters exercise their over-allotment option in full).

Quest Resource proposes to use approximately USD70m of the net proceeds from this offering to fund a portion of its USD140m PetroEdge acquisition. The remaining portion of the net proceeds of the offering, plus the net proceeds from a USD35m term loan will be used to refinance the company's existing revolving credit facility. This will be used to pay fees and expenses related to the PetroEdge acquisition and for general corporate purposes, including drilling and development activities.

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