Magnolia Petroleum Plc Issue of Equity

 
TIDMMAGP 
 
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 
 
4 August 2016 
 
             Magnolia Petroleum Plc ('Magnolia' or 'the Company') 
 
                                Issue of Equity 
 
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas 
exploration and production company, is pleased to announce that it has raised GBP 
250,000 via the issue of 250,000,000 new ordinary shares (the 'Placing Shares') 
in the Company at a price of 0.1 pence per share (the 'Placing'). The Placing 
was completed through the Company's broker Cornhill Capital Limited.  The 
proceeds of the Placing will be used to fund current drilling commitments on 
its acreage in proven US onshore hydrocarbon formations, such as the Woodford 
and Mississippi Lime in Oklahoma. 
 
Rita Whittington, COO of Magnolia Petroleum, said, "We continue to be 
encouraged by the number of wells currently drilling and/or completing on our 
leases, and the funds raised will enable Magnolia to maintain its participation 
in future drilling activity where it makes commercial sense to do so.  Subject 
to the results, this new drilling activity fits with our strategy to improve 
our portfolio of wells, and in the process increase profitability at current 
oil prices.  We are focused on ensuring we emerge from the current downturn 
with a high quality, asset backed, cash flow generative platform so that we are 
able to take advantage of opportunities that present themselves when the cycle 
picks up." 
 
Admission and dealings 
 
The Placing Shares will rank pari passu in all respects with the Company's 
existing issued ordinary shares and will be equivalent to 16.38% of the 
enlarged issued share capital. Application has been made for the admission of 
the Placing Shares to trading on AIM and it is expected that admission will 
occur and that dealings will commence at 8.00 a.m. on 9 August 2016. The 
Placing 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 
Placing Shares, the Company will have 1,526,458,563 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 1,526,458,563. 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. 
 
                                 * * ENDS * * 
 
For further information on Magnolia Petroleum Plc visit http:// 
www.magnoliapetroleum.com/ or contact the following: 
 
Steven Snead               Magnolia Petroleum Plc       +01918449 8750 
 
Rita Whittington           Magnolia Petroleum Plc       +01918449 8750 
 
Jo Turner / James Caithie  Cairn Financial Advisers     [phone] 
                           LLP 
 
Colin Rowbury              Cornhill Capital Limited     [phone] 
 
Lottie Brocklehurst        St Brides Partners Ltd       [phone] 
 
Frank Buhagiar             St Brides Partners           [phone] 
                           Ltd 
 
Notes 
 
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration 
and production company.  Its portfolio includes interests in 146 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                                                           146 
 
Being drilled / completed                                            12 
 
Elected to participate / waiting to                                  18 
spud 
 
TOTAL                                                               176 
 
 
 
END 
 

(END) Dow Jones Newswires

August 04, 2016 02:00 ET (06:00 GMT)