LONDON (Alliance News) - Magnolia Petroleum PLC Friday said it has raised GBP1 million via the issue of 142.9 million shares at a price of 0.7 pence each, and said it has appointed Sanlam Securities UK Ltd and Cornhill Capital Ltd as its joint brokers.
Shares in Magnolia opened down 9.1% at 0.750 pence on Friday.
The oil and gas company said the net proceeds from its raising will be used to further expedite its existing growth and investment strategy, including the drilling of operated vertical wells targeting the Mississippi Lime, Skinner and Red Fork formations in Oklahoma.
"We intend to deploy the funds that we have successfully raised today targeting significant returns for the company. Specifically, we are delighted to be picking up the drill bit again for our own operated wells. In the second half of this year, we plan to drill two low cost vertical wells in which we have a 94% interest. Together with the low risk nature of the conventional formations we are targeting, the new wells have the potential to significantly add to our existing production and our net proven reserves," Chief Operating Officer Rita Whittington said in a statement.
Magnolia added that it has appointed Sanlam Securities UK Ltd and Cornhill Capital Ltd as joint brokers to the company.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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