24th Sep 2012 16:16
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
24 September 2012
Magnolia Petroleum Plc(`Magnolia' or `the Company') Issue of Equity to raise £1.25million
Magnolia Petroleum plc ("Magnolia" or the "Company"), the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce that it has raised £1.25m gross through an issue at 2.4p each of 52,222,208 new ordinary shares of 0.1p each in the capital of the Company ("New Ordinary Shares"). The issue price represents a discount of approximately 3 per cent. to the 15 day volume weighted average price of 2.49p.
£1,053,333 has been raised through a draw down against its £10 million equity financing facility ("EFF") with Darwin Strategic Limited ("Darwin") with the Company allotting 43,888,888 New Ordinary Shares to Darwin under the terms of the EFF agreement and conditional on admission to trading on AIM. The draw down is the second undertaken by the Company since the announcement of the EFF on 9 August 2012 with the Company now having drawn down an aggregate of approximately £1.8m. The Company is also pleased to announce that it has raised £200,000 via the issue of 7,499,990 New Ordinary Shares, including 1,250,000 New Ordinary Shares to Ronald Harwood, a non-executive director of the Company.
Darwin has exercised its right under the terms of the EFF, as announced on 5 September 2012, to direct allotment under the EFF to its parent, Henderson Global Investors' Alphagen Volantis Fund ("Henderson"), and 31,688,888 of the EFF Shares (£760,533 at 2.4p per share) are being issued to Henderson.
Application will be made for the admission of the 52,222,208 New Ordinary Shares, which represent 6.7% of the issued share capital as enlarged by the New Ordinary Shares (the "Enlarged Share Capital"), to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m. on 5 October 2012.
Following Admission, the Company's enlarged issued share capital will comprise 781,514,957 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 781,514,957 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.
Rita Whittington, COO of Magnolia Petroleum plc, commented, "We are very pleased to have raised significant funds at a small discount to recent market prices utilising the EFF. The Company has now raised over £2.5 million in the last three months and now has sufficient funds to meet its immediate capital expenditure requirements, including the costs of drilling its first well as operator."
The table below sets out the number of shares subscribed for by Ronald Harwood under the Subscription and his subsequent holding.
Director Subscription Subsequent % of Enlarged Number of Shares Holding Share Capital Options and Warrants Ronald Harwood 1,250,000 29,732,426 3.80 1,660,000 ** ENDS **
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 84 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 84 Being Drilled / Completed 8 Elected to participate / waiting to 12spud TOTAL 104
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.
Related Shares:
Magnolia Petroleum