5th Sep 2012 07:00
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
5 September 2012
Magnolia Petroleum Plc(`Magnolia' or `the Company') Issue of Equity and Amendment of Equity Financing Facility
Magnolia Petroleum plc ("Magnolia" or the "Company"), the AIM quoted US onshore focused oil and gas exploration and production company, has raised gross proceeds of £761,000 in a draw down against its £10 million equity financing facility ("EFF") with Darwin Strategic Limited ("Darwin").
Under the terms of the EFF agreement the Company has allotted, conditional on admission to trading on AIM, 33,823,529 new ordinary shares of 0.1p each to Darwin (the "New Magnolia Shares"). The New Magnolia Shares have been issued at 2.25p per share and rank pari passu in all respects with the existing ordinary shares of 0.1p each in Magnolia.
The draw down is the first undertaken by the Company since the announcement of the EFF on 9 August 2012 and the issue price represents a discount of approximately 3 per cent. to the 15 day volume weighted average price (`VWAP') of 2.33p.
Application will be made for the admission of the 33,823,529 New Magnolia Shares to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m. on 11 September 2012.
Following Admission, the Company's enlarged issued share capital will comprise 729,292,749 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 729,292,749 ordinary shares 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 FSA's Disclosure and Transparency Rules.
In addition, the Company and Darwin have also agreed to the following variations to the EFF contract announced on 9 August 2012:
• The subscription price paid by Darwin will now be 100% of the average of the three lowest bid prices during the periods and not 95% as previously announced. Instead Darwin will receive a cash commission of 5%. There is no impact on the net cash received by the Company.
• In order to provide additional capital to the Company, Darwin and the Company may mutually agree at the end of the pricing period to a variation of subscription price. This may allow for a larger subscription via any over-allotment facility authorised by the Company.
• Darwin may direct allotments under the EFF to be made to its parent fund, Henderson Global Investors' Alphagen Volantis Fund.
Rita Whittington, COO of Magnolia Petroleum plc, commented, "We are very pleased to have raised funds at a small discount to market price utilising the EFF. We believe that the structure of the EFF sits well alongside our business model and will be very beneficial to Magnolia as we continue to increase the assets of the Company and seek to add value per share for our shareholders."
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For further information on Magnolia Petroleum Plc visit 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
Antony Legge/James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550
John Howes/John-Henry Wicks Northland Capital Partners +44 (0) 20 7796 8800
Limited Lottie Brocklehurst St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 (0) 20 7236 1177 Ltd NotesMagnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas explorationand production company. Its portfolio includes interests in 83 producing andnon-producing assets, primarily located in the highly productive Bakken/ThreeForks Sanish hydrocarbon formations in North Dakota as well as the oil richMississippi Lime and the substantial and proven Woodford and Hunton formationsin Oklahoma.Summary of WellsCategory Number of wells Producing 83 Being Drilled / Completed 9 Elected to participate / waiting to 9spud TOTAL 101
This summary excludes four out of six wells acquired as part of the acquisition of 800 gross acres with a 100% working interest in Osage County, Oklahoma, as announced on 10 February 2012. These four wells are currently `shut in' and will require a workover programme at some point in the future to bring back into production.
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