April 23 (Reuters) - New Source Energy Corp, which develops onshore oil and natural gas projects in the United States, said it expects its initial public offering of 9.1 million shares to be priced in the range of $10 to $12 per share.
In August last year, the company had filed with the U.S. Securities and Exchange Commission to raise up to $100 million in an IPO.
New Source’s principal stockholder and chairman David Chernicky, who currently owns 83 percent of the company, will see his stake reduce to about 61 percent after the offering.
The Oklahoma-based company, which expects to list its shares on the New York Stock Exchange under the symbol “NSE,” plans to use a part of the proceeds to fund acquisitions and repay debt.
The company had an estimated proved reserves of about 23.8 million barrels of oil equivalent (MMBoe) as of Dec. 31, 2011, of which 34 percent were classified as proved developed reserves. The company’s average net production was 3,725 barrels per day last year.
BMO Capital Markets and KeyBanc Capital Markets are acting as the lead underwriters for the offering.