First US$500,000 Received11 Dec 2017 07:05
Magnolia CEO, Rita Whittington said, “The first US$500,000 under the US$18.5 million agreement with WED represents a major milestone for Magnolia. Thanks to the quantum of funds involved, the fees generated, and the 25% carried interest in new wells, the WED agreement promises to accelerate our strategy which is to generate value through the acquisition and development of leases in productive US onshore formations alongside established operators such as Devon Energy and Continental Resources.  The management fees will complement the revenues generated by our portfolio of interests in over 150 producing wells; while our carried interest in new wells will provide de-risked, nil cost entry into attractive leases.â€
Western Energy Development LLC CEO, Greg Neher said, “We expect today’s US$500,000 investment will be the first of many and we look forward to working closely with the Magnolia team with a view to replicating the success of the pilot programme on a much larger scale. We feel confident in our near-term competitive position because amendments to the EB-5 programme currently being considered by the US Congress have the potential to accelerate our growth.  Specifically, two changes contemplated in proposed bills: firstly a dramatically shorter visa issuance wait for applicants that invest in rural projects such as WED’s compared to urban real estate projects; and secondly an almost doubling in the EB-5 minimum investment amount — meaning we require fewer investors to reach or exceed our targets.â€
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