AIM fundraising for Magnolia

Magnolia Petroleum has raised £565,000 and signed up to a new equity financing facility.

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.’

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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Oil and Gas sector