LONDON (Alliance News) - US-focused oil and gas explorer Magnolia Petroleum PLC on Monday said it has raised GBP300,000 through a share placing.
The company issued 214.3 million shares at 0.14 pence per share through broker Cornhill Capital Ltd. Magnolia shares were down 18% to 0.155p on Monday.
Magnolia said it intends to use the proceeds from the placing to pay down its debt.
"In response to highly volatile oil markets, the directors have been focused on ensuring the business
is well placed to withstand an extended period of the current oil price downturn and also any further deterioration in market conditions," said Rita Whittington, Magnolia's chief operating officer.
"A comprehensive review is underway to realign our cost base with today's markets and in tandem with this, the net proceeds of the placing will be used to reduce net debt and further strengthen Magnolia's balance sheet," Whittington added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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