E&P Riley Exploration Permian agreed to buy acreage in New Mexico from an undisclosed seller and has launched a stock offering to pay for the deal, according to regulatory filings.

Riley Permian said it entered into the purchase and sale agreement on March 22 to buy 12,500 net acres in Eddy County. The company will pay for the transaction in cash, but did not specify the purchase price, according to Securities and Exchange Commission (SEC) documents.

On April 4, the company launched an underwritten public offering of 2.1 million shares of its stock, with proceeds from the offering primarily to be used for the acquisition. Any remaining balance will be paid through its revolving credit facility, the company said in an April 4 press release.

At the time the stock offering was filed, the last reported price of the stock was $33.88. At that price, the shares would fetch about $71.1 million.

The stock offering consists of 700,000 shares offered by Riley Permian and 1.4 million shares held by certain company stockholders. The company and the selling stockholders intend to grant the underwriters a 30-day option to purchase up to 315,000 additional shares of common stock.

Riley Permian anticipates closing the acquisition in May, with an effective date of Dec. 1, 2023.

Truist Securities, Inc. and Roth Capital Partners are acting as joint book-running managers for the offering. Janney Montgomery Scott LLC and Tuohy Brothers Investment Research Inc. are acting as co-managers.