ENID, Okla., March 1, 2011 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR) announced today that it and certain selling shareholders intend to offer 10,000,000 shares of the Company's common stock to the public, of which 9,170,000 shares would be sold by the Company and 830,000 shares would be sold by the selling shareholders, pursuant to the Company's effective shelf registration statement. The Company also intends to grant the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock to cover over-allotments, if any. The Company expects to utilize the net proceeds it receives from the offering to repay all amounts outstanding under the Company's $750 million revolving credit facility and to accelerate the Company's multi-year drilling program by funding its increased 2011 capital budget. The Company will not receive any proceeds from the sale of the shares by the selling shareholders.
BofA Merrill Lynch and J.P. Morgan are acting as joint book-running managers for the offering. When available, a copy of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained from BofA Merrill Lynch, 4 World Financial Center, New York, NY 10080, Attn: Prospectus Department or email email@example.com; or J.P. Morgan c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling toll-free at 1-866-803-9204.
The registration statement relating to these securities has become effective by rule of the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities law in any such state or jurisdiction. The offering of the Company and selling shareholders' common stock may be made only by means of a prospectus supplement and the accompanying prospectus.
This press release includes forward-looking statements, which give the Company's current expectations or forecasts of future events based on currently available information. Forward-looking statements in this press release relate to, among other things, the proposed offering of common stock and the use of proceeds therefrom. Such statements are subject to a number of risks and uncertainties, including those identified in "Item 1A. Risk Factors" and elsewhere in the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize (or the consequences of such a development changes), or if underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. The Company does not undertake to update or revise its forward-looking statements as conditions change or as additional information becomes available.
SOURCE Continental Resources