Magnolia Petroleum raises 1.3m pounds for new plays

Magnolia Petroleum, the US-focused oil and gas explorer has raised 1.3m pounds through a share placing and subscription.

The placing of 95,653,740 new ordinary shares, at 1.3p per share, was "significantly oversubscribed", the group said.

The 4,461,530 subscription shares were taken up by directors of the firm.

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Magnolia's Chief Operating Officer, Rita Whittington said: "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%."

Shares in Magnolia gained 4.6% by 12:42, the stock is 85% ahead over the last 12 months.

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