12th Nov 2012 07:00
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
12 November 2012
Magnolia Petroleum Plc(`Magnolia' or `the Company') Issue of Equity to raise £2.9million
Magnolia Petroleum plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce that it has raised £ 2,865,165, before expenses, under its £10 million equity financing facility (`EFF') with Darwin Strategic Limited (`Darwin').
Under the terms of the EFF the Company has drawn down £1,886,233 through the issue of 39,850,000 new ordinary shares of 0.1p each to Darwin at a price of 4.733p per share (the "Darwin Shares"). A further £978,932 has been raised through the issue at 4.2p per share of 23,307,894 new ordinary shares of 0.1p each (the "Henderson Shares") to Henderson Global Investors' Alphagen Volantis Fund ("Henderson"), the parent of Darwin. The blended price of the Darwin Shares and the Henderson Shares (together the "new Magnolia Shares") is 4.5365p per share, representing a discount of approximately 3 per cent. to the 15 day volume weighted average price (`VWAP') of 4.6725p. The New Magnolia Shares, which have been issued conditional upon admission to AIM, rank pari passu in all respects with the existing ordinary shares of 0.1p each in Magnolia.
The draw down is the third undertaken by the Company since the EFF was secured on 9 August 2012. The Company has now drawn down an aggregate of approximately £4,665,165 against the facility total of £10,000,000.
Application will be made for the admission of the 63,157,894 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 16 November 2012.
Following Admission, the Company's enlarged issued share capital will comprise 844,672,851 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 844,672,851 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, said, "The majority of the funds raised will be used to settle the US$2 million payment outstanding in relation to the acquisition, as announced on 2 November 2012, of 6,700 net mineral acres in Montana, which we believe has the potential to become a major extension of the prolific Bakken/ Three Forks Sanish formations.
"The remaining funds will help fund Magnolia's share of costs in several of the new wells in which we expect to participate in the near future, including the four additional Jake wells in the Bakken/ Three Forks Sanish formations, North Dakota operated by Statoil. The Company is receiving new well proposals on a very regular basis and the EFF is proving a useful means of raising money quickly and effectively and so enabling us to participate in these opportunities."
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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 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 15 Elected to participate / waiting to 15spud TOTAL 114
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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