LONDON (Alliance News) - Magnolia Petroleum PLC Tuesday said the borrowing base
limit of its credit facility has been increased for the second time since securing the facility.
In a statement, the US onshore focused oil and gas exploration and production company said the borrowing base has been increased to USD2.75 million from USD2.1 million.
The development comes after an increase in the company's net attributable proved and developed producing reserves.
The credit facility, along with revenues generated from production, funds Magnolia's drilling activity to prove up the reserves on its leases in proven US onshore formations.
Magnolia Petroleum agreed a three-year revolving line of credit with a nominal value of USD5.0 million and interest in October 2013. As initial borrowing basis limit of USD1.6 million was set. It is reassessed every six months and adjusted in line with Magnolia's proved and developed producing reserves.
"With USD2.75 million available from the credit facility and revenues growing strongly, we are well placed to prove up the reserves on our leases, and in the process generate value for shareholders," Rita Whittington, chief operating officer, said in a statement.
Magnolia Petroleum didn't provide the names of the lenders.
Magnolia Petroleum shares were Tuesday quoted at 1.43 pence, down 1.5%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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