Magnolia completes $2.1m fundraising, Daniel Stewart take Leading Role
Supported by Daniel Stewart, London's leading broker in the oil and gas sector,
AIM-listed Magnolia Petroleum has successfully raised £1.3 million ($2.1 million) as it announced plans to increase its acreage in the US.
AIM-listed Magnolia Petroleum has successfully raised £1.3 million ($2.1 million) as it announced plans to increase its acreage in the US.
Magnolia raised the funds through the placement of more than 95.6 million new ordinary shares at 1.3 pence per share and the subscription of nearly 4.5 million shares to certain directors at the same price.
“Today’s fund raising will go towards our participation in further drilling in prolific plays such as the Three Forks-Sanish where earlier this week we reported our best ever initial production rate that has, on its own, increased our net barrels of oil per day by 50%,” Magnolia chief executive Rita Whittington said in a statement on Friday.
“In addition, we continue to evaluate opportunities to increase our acreage across all the formations in which we have a presence, particularly the reopening Mississippi oil play in Oklahoma where we recently acquired 1484 net acres with working interests of up to 100% and where we remain track to operate our first well later this year.”
Magnolia said it was planning to purchase further producing and non-producing interests in the Bakken and underlying Three Forks-Sanish formations in North Dakota as well as in the Woodford/Hunton reservoirs and the oil-rich Mississippi formation in Oklahoma.
The company currently holds stakes in 64 oil and gas producing properties in North Dakota and Oklahoma.
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