Contango Oil & Gas Co. priced a public offering of 5 million common shares for total gross proceeds of $50 million, the company said July 22.

The proceeds will fund the purchase price of the acquisition of undeveloped Southern Delaware Basin acreage from a third party, and drilling costs associated with the initial development thereof.

The proceeds could also be used to repay outstanding revolving credit facility amounts. If the acreage acquisition does not close, Contango said the proceeds would support general corporate purposes.

Underwriters received a 30-day option to purchase up to 750,000 million additional shares.

RBC Capital Markets, SunTrust Robinson Humphrey and Seaport Global Securities are joint book-running managers.

The offering is scheduled to close July 27.

Contango Oil & Gas Co. is based in in Houston.