This excerpt taken from the DBLE 10-Q filed Nov 7, 2007.
USE OF PROCEEDS
We estimate that the net proceeds from this offering will be approximately $33.0 million, or approximately $38.0 million if the underwriter exercises its option to purchase additional shares of Series A Preferred Stock in full, after deducting the underwriting discounts, commissions and advisory fees and estimated expenses of the offering payable by us.
We intend to use the net proceeds from this offering to (i) reduce indebtedness under our revolving bank facility, which was approximately $16 million at June 25, 2007 (which will permit additional borrowings in the future under the terms of our bank credit facility), (ii) fund drilling and development of our Atlantic Rim properties when and if those properties become available for development, (iii) fund drilling and development of our Pinedale and other properties, (iv) undertake potential acquisitions and (v) fund other general corporate purposes.
We have borrowed funds under our bank credit facility to fund drilling and development of our properties and for other general corporate purposes. The bank credit facility is a revolving facility that matures on July 31, 2010 and that bears interest at a rate of 1.125% below the prime rate as published in The Wall Street Journal (payable monthly). As of March 31, 2007, the interest rate was 7.125%.