Magnolia Petroleum Plc / Index: AIM /
Epic: MAGP / Sector: Oil & Gas
29 May 2015
Magnolia Petroleum
Plc (‘Magnolia’ or ‘the Company’)
Subscription to
raise £1 million & Appointment of Joint Brokers
Magnolia Petroleum Plc, the AIM quoted US onshore focussed oil
and gas exploration and production company, is pleased to announce
that it has raised £1 million via the issue of 142,857,143
new ordinary shares (the ‘Subscription Shares’) in the Company at a
price of 0.7 pence per share (the
‘Subscription’). The Subscription was completed through Sanlam
Securities UK Limited.
The net proceeds of the Subscription will be used to further
expedite the Company's existing growth and investment strategy.
Specifically, the funds raised will be invested in Magnolia's
participation in new wells across its leases in proven US onshore
plays. These will include the drilling of Magnolia operated
vertical wells, which are 94% owned by the Company targeting the
Mississippi Lime, Skinner and Red Fork formations in
Oklahoma. Additionally, the net proceeds will fund Magnolia’s
participation in nine wells with an average working interest of
1.9%, three wells targeting the Woodford, three targeting the Mississippi Lime
and three vertical wells targeting various formations.
Rita Whittington, COO of Magnolia
Petroleum, said, “We intend to deploy the funds that we have
successfully raised today targeting significant returns for the
Company. Specifically, we are delighted to be picking up the
drill bit again for our own operated wells. In the second
half of this year, we plan to drill two low cost vertical wells in
which we have a 94% interest. Together with the low risk
nature of the conventional formations we are targeting, the new
wells have the potential to significantly add to our existing
production and our net proven reserves. These currently stand at
985 Mbbls of oil and 2,905 MMcf of gas, and as at 1 January 2015 were independently valued at
US$26.65 million, considerably higher
than our current market valuation.
“In addition, we continue to receive proposals to drill new
wells on our leases in North
Dakota and Oklahoma,
alongside established operators. We view this as testament to
the quality of our acreage which offers multiple opportunities to
generate attractive returns in the current volatile oil price
environment. As a result of all this activity, the second
half of the year promises to be a highly exciting period for
Magnolia and I look forward to providing further updates on our
progress.”
Admission and dealings
The Subscription Shares will rank pari passu in all respects
with the Company's existing issued ordinary shares and will be
equivalent to 13.6% of the enlarged issued share capital.
Application has been made for the admission of the Subscription
Shares to trading on AIM and it is expected that admission will
occur and that dealings will commence at 8.00 a.m. on 2 June
2015. The Subscription is conditional, inter alia, on
Admission becoming effective.
For the purposes of the Financial Conduct Authority's Disclosure
and Transparency Rules, the Company announces that following the
issue of the Subscription Shares, the Company will have
1,053,529,994 Ordinary Shares in issue ("Enlarged Share
Capital").
The Company has no ordinary shares held in treasury. The total
number of voting rights in the Company will therefore be
1,053,529,994. This figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under
the FCA's Disclosure and Transparency Rules.
Appointment of Joint Brokers
Sanlam Securities UK Limited and Cornhill Capital Limited have
today been appointed as Joint Brokers to the Company.
* * ENDS * *
For further information on Magnolia Petroleum Plc visit
http://www.magnoliapetroleum.com/ or contact the following:
Steven Snead |
Magnolia Petroleum Plc |
+01 918 449 8750 |
Rita Whittington |
Magnolia Petroleum Plc |
+01 918 449 8750 |
Jo Turner / James
Caithie |
Cairn Financial Advisers
LLP |
+44 20 7148 7900 |
Jamie Vickers / Max Bascombe |
Sanlam Securities UK Limited |
+44 20 7280 8700 |
Colin Rowbury |
Cornhill Capital
Limited |
+44 20 7710 9610 |
Lottie
Brocklehurst |
St Brides Partners Ltd |
+44 20 7236 1177 |
Frank Buhagiar |
St Brides Partners
Ltd |
+44 20 7236 1177 |
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas
exploration and production company. Its portfolio includes
interests in 192 producing and non-producing assets, primarily
located in the highly productive Bakken/Three Forks Sanish
hydrocarbon formations in North
Dakota as well as the oil rich Mississippi Lime and the
substantial and proven Woodford
and Hunton formations in Oklahoma.
Summary of Wells
Category |
Number of wells |
Producing |
192 |
|
|
Being drilled / completed |
2 |
Elected to participate / waiting to
spud |
20 |
TOTAL |
214 |