AIM-listed Magnolia Petroleum, which is focused on US oil and gas exploration has raised fresh funds, four months after completing a £1.5 million placing.

Darwin Strategic has stepped in to provide the equity financing, which is set to allow Magnolia to speed up its expansion.

The facility will operate over the next 36 months, allowing the AIM-quoted company draw down on it based on the three lowest daily closing bid prices during the 15 trading days immediately following a draw down notice.

Darwin Strategic is a majority-owned subsidiary of Henderson Global Investors’ Alphagen Volantis fund.

Rita Whittington, COO of Magnolia Petroleum, comments, ‘We are extremely pleased to welcome Henderson Global to the share register of Magnolia as an institutional investor and that we have reached heads of terms in respect of a £10 million financing facility.

‘Our participation in the drilling wells, both in number and percentage interest is on the increase. The fundraising will enable us to aggressively participate in the development of prospects in which we have an interest.’