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Magnolia raises funds amid volatile oil market

Shares in Magnolia Petroleum went lower as it said it had brought in £300,000 through a share placing amid volatile oil markets. .
Magnolia raises funds amid volatile oil market
The US onshore oil and gas group added eight new wells to its portfolio in its latest quarter, taking the total in production where it has a stake to 210..

Shares in Magnolia Petroleum (LON:MAGP) went lower as it said it had brought in £300,000 through a share placing amid volatile oil markets.

The cash will be used to reduce its net debt.

Chief operating officer Rita Whittington told investors the firm was focused on ensuring it was well placed to withstand an extended period of the current oil price downturn and also any further deterioration in market conditions. 

"A comprehensive review is underway to realign our cost base with today’s markets and in tandem with this, the net proceeds of the placing will be used to reduce net debt and further strengthen Magnolia’s balance sheet. 

"While we have no control over the direction of the oil price or how long the current downturn will last, we are taking every measure to ensure Magnolia is well placed for when sentiment and activity recovers.”

The company issued around 214.2 mln shares  at 0.14 pence per share. The shares on Friday closed at 0.19p.

The US onshore oil and gas group added eight new wells to its portfolio in its latest quarter, taking the total in production where it has a stake to 210.

Shares today are down around 21% at 0.15p.

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