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 Shares Traded Last Trade
  0.00 0.0% 0.30 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
0.20 0.40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 1.03 -1.26 -0.07
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 0.30 GBX

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Date Time Title Posts
28/9/201812:46Magnolia Petroleum Plc 2013, for the serious holders1,803
04/9/201410:38why to BUY and HOLD in Magnolia Petroleum (MAGP-
12/12/201310:10Magnolia Petroleum Plc602
12/9/201310:51Step Up in Revenues from Highly Prospective Magnolia Petroleum PLC4,503

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ettienne1951: Papillon Perhaps it's to find some solace from the mentality of being closely attached to a share for a long time, possibly having averaged down; a kind of wishful thinking acting as joint encouragement. As for the recommendation today to buy-back shares, it's either delusional or displays a total inability to comprehend the importance of the management of a company's liquidity and spotting the warning signs of existential danger. This company is playing to the tune of its lender, not the shareholders, and with reason. They need to read the note relating to 'Going Concern' in the last annual accounts. They need to calculate the appallingly low current ratios. Perhaps they should take off the rose-tinted glasses and take a hard look at the CEO's interview here soon after they listed late 2011. She set out the milestones but just what have they achieved in that time for shareholders? And the comment at 2.33 is a scream. " We are really conscientious about dilution" In Jan 2012, there were c560m shares in issue; for comparison, that's the equivalent of 5.6m post-consolidation. In December 2017, they placed 8.6m shares to raise a paltry $300k and increased the total shares in issue to almost 35m - that's more than 6 times what it had been five years earlier, representing a balance sheet which shows there is nothing attributable to shareholders. Perhaps they'll take note that the share price per this 6-year-old video was 2.5p. The share price today is 2.5p but there's been a 100:.1 consolidation in the meantime. Market value has dropped in that time from $15m to sub $1m.
ettienne1951: I noted a regular contributor on LSE has today suggested two options to lift the share price. One of those options was quote: "create a buyback to reduce the number of shares in the marketplace." unquote. Is this poster serious? Do they know the reason for the decline in the share price? Have they read the annual report? Even the latest operations update gives a clue. It's to do with cash generation and chronic levels of indebtedness both to its lender and its creditors. The company has never paid a dividend; it's desperate to conserve cash but an investor suggests a way to reverse the share price decline is to drain the company of even more cash and for it buy back some of its shares. Really? One former American Gand Slam tennis player of the 70's and '80's, renown for his dislike for linesmen's dubious ball out calls, might have put it differently.
ettienne1951: A company-wide Q1 operations update, one that is not just confined to operations on behalf of WED, has just been released and it contains some clues to what may be expected in the annual accounts 2017. My view is that they have been 'treading water' in the quarter. A mixed bag of announcements some of which, interestingly, go into some detail about financing. On cash flow: "... the Company is producing positive cash flow from its existing operations and this is expected to increase further since revenues lag oil prices by a number of months." This is on the back of the rise of the price of WTI. As I've mentioned in my earlier post, significant positive cash-flow (driven by volume and a higher oiil price) is key as the balance sheet is in a parlous state with incredibly low current ratios including significant debt and negligible equity. So the question is what is the quantum of that cash-flow? All will be revealed in the annual accounts. Of some comfort iis the Nasdaq is reporting WTI crude futures jin the upper $60's by a suspected decline in U.S. crude inventories and by the ongoing risk of global supply disruptions.That's abput 17% above it's low in the first quarter. They also reported that ... "Working capital continues to be managed carefully in light of future planned participation in wells." It will be interesting to see how that translates on the balance sheet. My guess is that they are holding back on investment to conserve cash. Of note in that connection is this announcement ... "Debt reduction programme ongoing and the Company is considering further non-core disposals." As I predicted in a previous post, this would be a fund-raising resort in the event that the new equity placing route was blocked by virtue of the low share price and I think there could be a divestment announcement before the 2017 final results are published in June. Interestingly... The company has just reported: "119 producing wells in the Company’s portfolio as at end of Q1 2018.." They don't seem to have advanced much since their goal more than 5 years ago was 100 producing wells and but then the balance sheet was in a much healthier shape. That Q1 well count compares to the last announcement of producing wells in the H1 interims released in September: " Interests in 159 producing wells in proven US onshore formations (H1 2016: 151)." If we are comparing like with like, then since the last divestment of wells to raise liquid funds was last July and there have been no further divestment announcements, perhaps the apparent reduction of 40 in the company's producing well portfolio is due to shut-ins or some may be some be at the end of their economic lives or some are non-core and being prepared for disposal. Hopefully, clarification will come from future announcements. Interestingly, they report that the "Company is in the process of renegotiating its bank loan." In June 2017 in the annual 2016 accounts, it was reported: "A request for a longer-term extension to our reserved based lending facility (‘the Facility’) is currently being processed by the Company’s bank. The Bank continues to view the Facility as part of a long-term relationship with Magnolia. In line with this, the Bank has agreed to extend the Facility from 8 June 2017 to 8 August 2017 while it processes the appropriate paperwork, loan documents as well as the relevant financial and reserve report information that has been provided by Magnolia’s management. As a reminder, the current ratio covenant was already waived until further written notice by the Bank." At that time, the company was reporting borrowings of $2.638m (all repayable in 1-2 years) having repaid $516k in that year. Six months on, at the H1 interims last September, they announced that $77k had been repaid. They then raised $300k at the December placing. and they currently report that a "debt reduction programme" is ongoing, The annual 2017 accounts will make for interesting reading. They are now reporting that "Since the last extension, the Company’s bank has been sold and negotiations are slower than previously experienced." The question is how 'conservative' will the new bank be compared to the previous lender and will they be as amenable as the old bank to waiving the 'current ratio' which was 0.19 at H1 down from 0.22 at Dec 2016. Will they be looking for guarantees as well as charges over cetain assets such as the reserves.? I suppose the WED agreement might give them some leaverage. Finally, on the subject of WED agreement, the company reported .... "Activity during the quarter has been centred on investing the first US$500,000 of our exclusive US$18.5 million agreement with WED into qualifying leases in Oklahoma" By the look of it, the activity wasn't completed as they also reported in their forward-looking Outlook statement ... "Acquire additional leases via the ongoing investment of the first tranche of WED funds." These are my opinions: DYOR
ettienne1951: The share price has fallen by 15% (to 3.75p at the date of writing) from 4.38p at the time of the December placing, when new shares were issued @ 3.5p net. That placing increased the total shares in issue by a whopping 25% and raised just £300k (say $400k if $1.33 / £1) such is the measure of the company's decline. The company's annual interest cost alone would shallow up about 1/3rd of that and that's not allowing for any repayment to reduce it's $2.5m borrowings or capex. Its predicament in my view is that unless something substantive is reported to the market, the ability to place further shares to raise funds, if it wished, will have passed for the foreseeable future. Creditors and bank debt were x5 times equity at the interims. With a desperate - looking balance sheet and cash generation, the company must improve its oil and gas reserves on which its borrowing depends but time isn't on its side. So much now depends on improved operational cash generation. It will be interesting to see how much progress the company makes, especially given the much-vaunted tie-up with WED announced early July 2017 - getting on for 9 months ago.
papillon: Fantasy company with fantasist investors, like temmujin and the lse dreamers. Still you can't blame RW and her family. MAGP has been a nice little earner for them. If you adjust the MAGP share price to take a/c of last years consolidation the share price has declined from a high of £5 in late 2012 to the current 4.625p. That's a loss of over 99% in just over 5 years. That's some decline! That takes some doing! Congratulations must go to RW and the BoD for that amazing performance! LOL I remember I held shares in MAGP back in 2012. The fantasists on the lse bb were then looking forward to holding a party when the share price hit £10 (10p pre consolidation). Ah those were the days! LOL. The fantasists talked of each other as being shipmates on the good ship Magnolia! LOL. Unfortunately the good ship Magnolia sank and bacame a shipwreck whilst on a long voyage!
ettienne1951: I look at the reaction of the share price today, to the RNS that the Gilchrist well has "exceeded expectations" producing 770 BOEPD which is 200 more than the company projected, with dismay. The share price increased by 25% on the ask and the spread widened to 20%. The timing is just a couple of days on following the unexceptional announcements of a $300k placing @3.5p and the management of the first WED investment under a previously announced agreement. So what have they just announced? It boils down to their 25% of the combined 1.57% interest with WED, increasing by less than 1 BOEPD to just over 3 BOEPD if I'm not mistaken.
ettienne1951: The interim accounts were illuminating, not least the Outlook Note: "Future well investment is likely to be funded from new funds received as part of the WED contract, by further portfolio rationalisation and by raising funds in the future." No mention there that any cashflow from existing well production would be put into new wells and one can only speculate that it's being spent covering lower overheads. My own view is that well investment has been constrained due to a continued strain on liquidity which in turn has restricted the company's funding options; hence the company has had to look to other funding streams such as WED and give them a 29% equity stake for the purpose, diluting the share price even further. Looking at the options: 1. Disposals of certain existing well interests (if that is what portfolio rationalisation means) might generate short-term cash but re-investment in new drilling opportunities has longer-term cashflow implications - eg. capex and drilling.There again, they may have patient drilling partners. 2. New funds as part of the WED contract - that's entirely out of the hands of the company's management. What hasn't been disclosed is the timeframe when the minimum $10m is to be 'committed' by WED. The WED contract in gross numbers appears attractive but whether it will get the company over its liquidity hurdle in the short to medium term, only time will tell. The company says: "this arrangement has the potential to create value for Magnolia because using US$500,000 of WED’s funds we conducted a pilot investment programme which generated a rate of return of 100%; a return on investment of 3.26 times; US$75,500 in value to date for Magnolia (lease bonus plus a carried interest for 25% in the first well, within each spacing unit); and US$127,982 uplift in the PV9 value of Magnolia’s reserves. Extrapolate the above based on the minimum US$10 million WED has committed under the agreement and the value on offer is there for all to see." The return of $75.5k is in 'value' but value is not the same thing as actual cashflow. They get an acquisition fee of $500 per acre secured; a 1% maintenance fee of the value of WED capital deployed ($5k for every £500k deployed) and a 25% carried working interest in the first well of a spacing and a portion of the net revenue on a sliding scale. Of the carried interest in the last well update (Gilchrist) WED and Magnolia's combined interest was reported by the company to be 1.57% and the company's share is 25% of that i.e. 0.3925% or less than half of one percent and quiet minuscule - albeit at no cost to the company. 3. Any new placing would need to see a significant turn-around in the share price first if the company wants to avoid further dilutive effects. It will be interesting to see how this strategy develops in the near term and the annual accounts should make for interesting reading if there are no significant announcements in the meantime. All in all, this seems to me to be a very risky and speculative investment.
failedqs: Area44 - I'd say that sleeven is correct here, magnolia is finished. Looks like Rita has sucked the lifeblood out of the company and the last few fundraisings have done little more than prolong her gravy train.It didn't turn a profit when times were good, so why would it now?One thing that you should bear in mind, Steven Snead decided to accept a huge discount to the share price to get rid of his huge shareholding, and he knows exactly what the prospects are....I'd also say, I was a holder from the floatation but could see the writing on the wall and sold out a couple of years ago. I see no reason to buy back now with the shares about 96% lower than when I sold.Don't get too attached to a share - look at it logically.Magnolia is totally and royally screwed.
failedqs: Wrong.......They are buying the shares at 0.06p.They are issuing NTOG shares as part of the deal at 2.5p, that's nothing to do with the MAGP price.
lord gnome: Interesting find reallyrich. I wonder if any of our so-called regulators know about this. Makes you wonder if the share price was manipulated all the way up to 5p. Do we know who bought all the wells divested by MAGP last year?
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