Laredo Petroleum Inc. updated its 2016 capital budget and estimated production, the company said May 10. The board of directors approved a revised budget of $420 million for the year, including about $345 for drilling and completions, about $35 million for production facilities and about $40 million for land, seismic and other costs.

The revised budget excludes investments in Medallion Gathering & Processing LLC’s pipeline system.

Laredo expects production associated with the revised budget to range between 16.1 million barrels of oil equivalent (MMboe) and 16.4 MMboe for 2016. This estimate is more than 10% higher than the fourth-quarter 2015 average production, the company said.

Randy A. Foutch, chairman and CEO, said that retaining the third drilling rig through 2016 has grown production from the fourth quarter of 2015, and puts the company at a growth trajectory through 2017.

Laredo expects to operate three horizontal rigs for the entirety of 2016 and could drill 45 to 49 gross horizontal wells.

Regarding liquidity, on May 6, Laredo Midstream Services LLC agreed to participate in a Medallion-Midland Basin investment of about $21 million, about $15 million of which has been paid, resulting in an outstanding balance of $230 million under the Laredo’s senior secured credit facility.

Additionally, Laredo said that it will use the net proceeds from an issuance of 9.5 million common shares in a public offering, which was also reported May 10, to pay the borrowings under the credit facility.

Underwriters were given a month-long option to purchase about 1.4 million additional shares.

Credit Suisse Securities (USA) LLC is the lead book-running manager for the offering.

Laredo Petroleum Inc. is based in Tulsa, Okla.