Magnolia Petroleum raises £1m in share placing; posts rise in 2014 revenue

AIM-listed oil and gas exploration company Magnolia Petroleum said on Friday that it has raised £1m through the issuance of 12.9m shares at 0.7p each to fund its ongoing drilling programme in the US.

It also said that it has appointed Sanlam Securities and Cornhill Capital as its joint brokers.

The net proceeds from the 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.

Chief operating officer Rita Whittington said: “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 a separate statement, the company also released its final results for 2014, posting a 58% rise in revenue to £3.8m and earnings before interest, tax, depreciation and amortisation of £2.6m, up 212% on the year.