Extraction Oil & Gas Announces Private Placement of Common Stock

DENVER, Dec. 12, 2016 -- Extraction Oil & Gas, Inc. (NASDAQ:XOG) (the “Company”), an oil and gas exploration and production company with primary assets in the Wattenberg Field in the Denver-Julesburg Basin of Colorado (the “DJ Basin”), today announced it has entered into an agreement to sell 25,041,095 shares of its Common Stock in a private placement, which is expected to result in approximately $457 million of gross proceeds and $442 million of net proceeds (after deducting placement agent commissions and the Company’s estimated expenses). 

The shares were sold to selected institutional and accredited investors. The Company expects to use the net proceeds from the offering to replenish approximately $177 million in cash utilized in two recently completed private acquisitions, and the remaining $265 million for additional bolt-on leasing operations in and around the area of the acquisitions and for general corporate purposes, a portion of which could be used for additional acquisitions.

The two recently completed acquisitions are located in the Company’s core focus area of the DJ Basin and consist of approximately 16,800 net acres with 425 net 1-mile equivalent locations.

Credit Suisse, Barclays, Goldman Sachs, Tudor, Pickering Holt & Co. and Wells Fargo acted as placement agents in connection with the offering.

The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein.

About Extraction Oil & Gas, Inc.

Denver-based Extraction Oil & Gas, Inc. is an independent energy exploration and development company focused on exploring, developing and producing crude oil, natural gas and NGLs primarily in the Wattenberg Field in the Denver-Julesburg Basin of Colorado. The Company's common shares are listed for trading on the NASDAQ under the symbol: “XOG.” For further information, please visit www.extractionog.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included herein concerning, among other things, planned capital expenditures, increases in oil and gas production, the number of anticipated wells to be drilled or completed after the date hereof, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "will," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the SEC in connection with our initial public offering and in subsequent public filings with the SEC. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statement.

Contact:

Rusty Kelley
[email protected]