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Bonanza Creek Cuts Expectations For IPO

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New York Stock Exchange (Photo by Spencer Platt/Getty Images)

New York Stock Exchange (Photo by Spencer Platt/Getty Images)

NEW YORK (AP) – Bonanza Creek Energy Inc. on Thursday priced its initial public offering below expectations.

The Denver oil and natural gas company said it plans to raise $195.5 million by selling up to 11.5 million shares at $17 apiece. Earlier this month, Bonanza said it planned to sell those shares at $20 each.

Bonanza said it would use the cash generated from the sale to refinance company debts, and to pay for company operations.

The company owns oil and gas fields in Arkansas, Colorado and California with access to 32.9 million barrels of proven reserves. Its daily production in October was 4,831 barrels of oil equivalent per day. By the end of the year, Bonanza said it will have drilled 115 wells.

Morgan Stanley & Co. and Credit Suisse Securities are listed as joint book-running managers for the offering.

Its shares are expected to begin trading on the New York Stock Exchange under the symbol “BCEI.”

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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