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A private equity firm is investing $400 million to back a plan to drill on 314,000 acres in the Tuscaloosa Marine Shale of southwest Mississippi and southeast Louisiana.

Houston-based Halcón Resources Corp said Monday it will sell $150 million in preferred stock to Apollo Global Management.

The deal calls for Halcón to pay 8 percent yearly interest on the preferred stock.

Apollo will also collect a 4 percent royalty on up to 75 wells that Halcón plans to drill.

Apollo could buy up to $250 million more in preferred shares on the same terms, gaining royalty rights to up to 125 more wells, the Times Picayune said.

“Fewer than 50 wells have been drilled so far in Amite and Wilkinson counties in Mississippi and West Feliciana, East Feliciana, St. Helena and Tangipahoa parishes in Louisiana,” the report said.

Halcón has leases on 241,000 acres in that region east, as well as on almost 73,000 acres west of the Mississippi River where operators have so far drilled few wells, the Times Picayune said.