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MAGP Magnolia Pet

0.30
0.00 (0.00%)
17 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Magnolia Pet LSE:MAGP London Ordinary Share GB00B63QSF76 ORD SHS 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.30 0.20 0.40 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Magnolia Petroleum Plc Proposed Disposal of North Dakota Assets

14/06/2018 7:00am

UK Regulatory


 
TIDMMAGP 
 
14 June 2018 
 
     Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 
 
             Magnolia Petroleum plc ('Magnolia' or 'the Company') 
 
                   Proposed Disposal of North Dakota Assets 
 
Magnolia Petroleum plc, the US focused oil and gas exploration and production 
company announces it has signed a non-binding agreement with a third party for 
the sale of all its wells in which it has varying interests in North Dakota 
(together 'the North Dakota Assets'), being approximately 31 wells, for a total 
consideration of US$1.5 million ('the Proposed Disposal').  In addition, the 
Company announces the sale of its 100% interest in the Roger Swartz #1 well in 
Oklahoma for approximately US$30,000. 
 
The Proposed Disposal is in line with the Company's debt reduction programme 
and, subject to shareholder consent and completion, will substantially clear a 
large portion of the outstanding US$2 million balance of the reserve-based 
lending facility ('the Lending Facility') of its wholly owned operating 
subsidiary, Magnolia Petroleum, Inc. ('Magnolia Inc'). As detailed in the 
Company's announcement of 7 June 2018, the Company embarked on a debt reduction 
programme in response to the Bank's decision not to extend the Lending Facility 
and its requirement that the full outstanding amount be repaid or refinanced by 
9 July 2018. 
 
The Proposed Disposal is conditional on the granting of approval of the Board's 
asset disposal programme at the Company's general meeting which is to be held 
at 15:30 p.m. BST (09:30 a.m. local time) on 22 June 2018 at the offices of 
Pray Walker P.C., 100 West Fifth Street, Suite 900, Tulsa, OK 74103, USA ('the 
General Meeting'). 
 
In the event that the Lending Facility is not repaid or refinanced, it is 
expected that either the Bank will repossess and sell assets to pay off the 
debt, which is likely to be at a lower value for Shareholders than the Company 
could achieve, or the Directors will be required to commence Chapter 11 
bankruptcy proceedings with respect to Magnolia Inc. This would also likely 
lead to a loss of control of the debt reduction programme and reduced value 
being achieved by the Company for its portfolio of wells. In this scenario, 
shareholders are unlikely to receive any value for the Company's portfolio of 
wells with all proceeds of sales being used to settle creditors and the costs 
of the Chapter 11 proceedings. 
 
The Company's current portfolio comprises interests in 108 wells and further 
details of the interests in wells and their economics were included in the 
Company's operations update on 16 April 2018 and in the circular of 7 June 
2018. 
 
This announcement contains inside information for the purposes of Article 7 of 
EU Regulation 596/2014. 
 
                                 * * ENDS * * 
 
For further information on Magnolia Petroleum Plc visit http:// 
www.magnoliapetroleum.com/ or contact the following: 
 
Rita Whittington           Magnolia Petroleum Plc       +01918449 8750 
 
Jo Turner / James Caithie  Cairn Financial Advisers     +44207213 0880 
                           LLP 
 
Daniel Gee                 Cornhill Capital Limited     +44207710 9610 
 
Lottie Wadham              St Brides Partners Ltd       +44207236 1177 
 
Frank Buhagiar             St Brides Partners           +44207236 1177 
                           Ltd 
 
 
 
END 
 

(END) Dow Jones Newswires

June 14, 2018 02:00 ET (06:00 GMT)

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