Prospectus Supplement No. 3 Filed pursuant to Rule 424(b)(3)
(To Prospectus dated August 9, 2005) Registration No. 333-116048
P R O S P E C T U S
SUPPLEMENT No. 3
CRIMSON EXPLORATION INC.
18,861,799 Shares of Crimson Exploration Inc. Common Stock
(the "Shares")
This document supplements the prospectus of Crimson Exploration Inc.,
dated August 9, 2005, as supplemented by the prospectus supplement dated
August 16, 2005 and the prospectus supplement dated November 14, 2005,
relating to the resale of up to 18,861,799 Shares issuable to certain
selling shareholders assuming the exercise of warrants or conversion of
certain preferred stock by those shareholders. The information in this
prospectus supplement replaces and supersedes the information set forth
under "Selling Shareholders" in the prospectus dated August 9, 2005. The
table in that section has been modified to reflect the transfer of 175,000
Shares from a named selling shareholder originally included in the
prospectus, Petro Capital Advisors, to one donee, St Marks School of Texas,
pursuant to the prospectus as supplemented.
This prospectus supplement is incorporated by reference into, and
should be read in conjunction with, the prospectus supplement dated
November 14, 2005, the prospectus supplement dated August 16, 2005 and the
prospectus dated August 9, 2005. This prospectus supplement is not complete
without, and may not be delivered or utilized except in connection with,
the prospectus supplement dated November 14, 2005, the prospectus
supplement dated August 16, 2005 and the prospectus dated August 9, 2005.
----------------
Investing in our stock involves a high degree of risk. Please see
"Risk Factors" beginning on page 9 of the prospectus, dated August 9, 2005,
for a discussion of certain factors that you should consider before
investing.
----------------
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or
passed upon the accuracy or adequacy of this prospectus. Any representation
to the contrary is a criminal offense.
The date of this prospectus supplement is December 9, 2005
SELLING SHAREHOLDERS
The selling shareholders may offer and sell, from time to time, any or
all of the Shares. Because the selling shareholders may offer all or only
some portion of the 18,861,799 Shares, no estimate can be given as to the
amount or percentage of these Shares that will be held by the selling
shareholders upon termination of the offering. There will be no proceeds to
us from the sale of shares of common stock in this offering. However, we
will receive proceeds from the sale of shares of common stock upon the
exercise of any warrants. Any proceeds received upon exercise of warrants
will be used for general working capital purposes.
The following table sets forth the name and relationship with us, if
any, of certain of the selling shareholders and (i) the maximum number of
shares of common stock which may be offered for the account of the selling
shareholders under this prospectus, (ii) the amount and percentage of
common stock that would be owned by the selling shareholders after
completion of the offering, assuming a sale of all of the common stock
which may be offered hereunder and (iii) the number of shares of common
stock beneficially owned by the selling shareholders as of the date of this
prospectus. Except as otherwise noted below, the selling shareholders have
not, within the past three years, had any position, office or other
material relationship with us.
Beneficial ownership is determined under the rules of the Securities
and Exchange Commission. The number of shares beneficially owned by a
person includes shares of common stock subject to options, warrants and
preferred stock held by that person that are currently convertible or
exercisable or convertible or exercisable within 60 days of the date of
this prospectus. The shares issuable under these securities are treated as
if outstanding for computing the percentage ownership of the person holding
these securities but are not treated as if outstanding for the purposes of
computing the percentage ownership of any other person.
------------------------------------------------------------------------------------------
Amount and
Name and Address of Total Shares % of Total Shares
Selling Security Holder Registered Ownership Owned(1)
------------------------------------------------------------------------------------------
Drawbridge Special Opportunities Fund, L.P (2) 1,009,112 14,550 1,023,662
1251 Avenue of the Americas
16th Floor *
New York, NY 10020
------------------------------------------------------------------------------------------
D.B. Zwirn Special Opportunities Fund, L.P. (2) 1,009,112 14,550 1,023,662
745 5th Avenue
18th Floor *
New York, NY 10151
------------------------------------------------------------------------------------------
Petro Capital Advisors(3) 1,383,572 75,000 1,458,572
3838 Oak Lawn Ave., Suite 1775
Dallas, TX 75201 *
------------------------------------------------------------------------------------------
Virgil Waggoner(4) 7,160,715 9,705,503 16,866,218
6605 Cypresswood Drive, Suite 250
Spring, TX 77379 25.5%
------------------------------------------------------------------------------------------
Patrick Parker 857,143 45,000 902,143
Scarbrough Building, 6th and Congress,
101 W. 6th St. Suite 610 *
Austin, TX 78701
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Amount and
Name and Address of Total Shares % of Total Shares
Selling Security Holder Registered Ownership Owned(1)
------------------------------------------------------------------------------------------
Douglas Moreland 1,428,572 78,333 1,506,905
1655 East Layton Drive
Englewood, CO 80100 *
------------------------------------------------------------------------------------------
Stanley Chason 71,428 0 71,428
6711 North Ocean Blvd.
Ocean Ridge, FL 33435 *
------------------------------------------------------------------------------------------
XMen, LLC 1,714,286 90,000 1,804,286
520 Lake Cook Road, Suite105
Deerfield, IL 60015 *
------------------------------------------------------------------------------------------
Bruce Goldstein 77,143 3,000 80,143
1934 Deercrest Lane
Northbrook, IL 60062 *
------------------------------------------------------------------------------------------
Barry S. Cohn Revocable Trust 214,286 11,250 225,536
2505 Astor Court
Glenview, IL 60025 *
------------------------------------------------------------------------------------------
Bargus Partnership 142,862 7,500 150,362
(Gus Schultes)
664 South Evergreen Ave *
Woodbury Heights, NJ 08097
------------------------------------------------------------------------------------------
Schultes Family Partnership LP 142,858 7,500 150,358
(Ed Schultes)
664 South Evergreen Ave *
Woodbury Heights, NJ 08097
------------------------------------------------------------------------------------------
Richard Schultes 142,858 7,500 150,358
664 South Evergreen Ave
Woodbury Heights, NJ 08097 *
------------------------------------------------------------------------------------------
4-Sibs, LLC 142,858 7,500 150,358
664 South Evergreen Ave
Woodbury Heights, NJ 08097 *
------------------------------------------------------------------------------------------
William Jefferys 28,570 1,500 30,070
664 South Evergreen Ave
Woodbury Heights, NJ 08097 *
------------------------------------------------------------------------------------------
John T. O'Brien and Linda O'Brian 28,570 1,500 30,070
(JTWROS)
664 South Evergreen Ave *
Woodbury Heights, NJ 08097
------------------------------------------------------------------------------------------
Robert Collison 28,570 1,500 30,070
664 South Evergreen Ave
Woodbury Heights, NJ 08097 *
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Amount and
Name and Address of Total Shares % of Total Shares
Selling Security Holder Registered Ownership Owned(1)
------------------------------------------------------------------------------------------
David Hartman 28,570 1,500 30,070
664 South Evergreen Ave
Woodbury Heights, NJ 08097 *
------------------------------------------------------------------------------------------
Jeffrey DeMatte 28,570 1,500 30,070
664 South Evergreen Ave
Woodbury Heights, NJ 08097 *
------------------------------------------------------------------------------------------
Edwin J. Hagerty 371,429 19,500 390,929
13355 Noel Road, Suite 1400
Dallas, TX 75248 *
------------------------------------------------------------------------------------------
Star-Tex Trading Company 285,715 84,667 370,382
16300 Addison Rd., Suite 300
Addison, TX 75001 *
------------------------------------------------------------------------------------------
ST Advisory Corp./John E. Loehr(5) 470,000 147,491 617,491
16300 Addison Rd., Suite 300
Addison, TX 75001 *
------------------------------------------------------------------------------------------
Thomas R, Kaetzer(6) 200,000 408,852 608,852
480 N. Sam Houston Parkway, Suite 300
Houston, TX 77060 1.1%
------------------------------------------------------------------------------------------
Jim C. Bigham(7) 100,000 160,985 260,985
480 N. Sam Houston Parkway, Suite 300
Houston, TX 77060 *
------------------------------------------------------------------------------------------
Marshall A. Smith III(8) 270,000 619,005 889,005
480 N. Sam Houston Parkway, Suite 300
Houston, TX 77060 1.6%
------------------------------------------------------------------------------------------
Intermarket Management LLC(9) 500,000 0 500,000
271 Grove Ave., Suite C-3
Verona, NJ 07044 *
------------------------------------------------------------------------------------------
Star Investments , LTD 50,000 39,500 89,500
3421 Causeway Blvd., Suite 103
Metairie, LA 70002 *
------------------------------------------------------------------------------------------
Ray B. Nesbitt 150,000 243,333 393,333
1 Winston Woods
Houston, TX 77024 *
------------------------------------------------------------------------------------------
J. T. Thompson 40,000 10,000 50,000
1212 Woodhollow Drive, No. 15101
Houston, TX 77057 *
------------------------------------------------------------------------------------------
Ron Zimmerman 60,000 0 60,000
1212 Woodhollow Drive, No. 15101
Houston, TX 77057 *
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Amount and
Name and Address of Total Shares % of Total Shares
Selling Security Holder Registered Ownership Owned(1)
------------------------------------------------------------------------------------------
Steven M. Morris 500,000 0 500,000
P.O. Box 941828
Houston, TX 77094 *
------------------------------------------------------------------------------------------
John Kruljac 20,000 0 20,000
8873 E. Bayou Gulch Road
Parker, CO 80134 *
------------------------------------------------------------------------------------------
USGT Investors 30,000 0 30,000
1845 Woodall Rodgers, Suite 1700
Dallas, TX 75201 *
------------------------------------------------------------------------------------------
St Marks School of Texas 175,000 0 175,000
10600 Preston Road
Dallas, TX 75230 *
------------------------------------------------------------------------------------------
-----------------
* Less than 1%
1 Includes shares registered hereunder.
2 The selling shareholder is a former lender.
3 The selling shareholder is a former investment advisor.
4 Mr. Waggoner is a former director of the Company.
5 Mr. Loehr is a former director and officer of the Company. Reflects 270,000
shares issuable to Mr. Loehr pursuant to immediately exercisable warrants
and 200,000 shares issued upon exchange of preferred stock held by ST
Advisory Corp. ST Advisory Corp. is owned by John E. Loehr.
6 Mr. Kaetzer is Senior Vice President of Operations of the Company. See
"Management."
7 Mr. Bigham is Vice President and Secretary of the Company. See
"Management."
8 Mr. Smith was a director of the Company.
9 Mr. M. Scott Manolis was one of our directors. Mr. Manolis is an owner of
Intermarket Management LLC.