🕐02.03.12 - 09:00 Uhr

MAGNOLIA PETROLEUM: COMPLETION OF FUNDRAISING OF £1.3M



Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 02 March 2012 Magnolia Petroleum Plc (Magnolia or the Company) Completion of Fundraising of �1.3m
Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and production company, is pleased to announce that it has raised approximately �1.3 million via the issue of 95,653,740 new ordinary shares (the "Placing Shares") in the Company at a price of 1.3 pence per share (the "Placing") and 4,461,530 new ordinary shares (the "Subscription Shares") in the Company at the same price to certain directors (the "Subscription").

The Placing was significantly oversubscribed.
The net proceeds of the Placing and the Subscription will be used to further expedite the Companys existing growth and investment strategy as set out at the time of Admission in November 2011.
Following the recent announcements, the Company intends to seek out further acquisitions of both producing and non-producing interests in the highly productive Bakken / Three Forks Sanish hydrocarbon formations in North Dakota as well as in the substantial and proven Woodford/Hunton reservoirs in Oklahoma and the oil rich Mississippi Formation located in Oklahoma.
In addition, the Company is reviewing a number of well proposals and will be participating in new drilling as appropriate.
Magnolia currently has interests in 64 oil and/or gas producing properties.

The Company owns leases in respect of 2,743 net acres in North Dakota and Oklahoma, 1,484 of which were recently acquired with working interests of up to 100% in Oklahoma where Magnolia also holds a licence to operate.
Rita Whittington, COO of Magnolia Petroleum, said, "It is an indication of the extraordinary activity taking place in US onshore hydrocarbon plays that we are receiving multiple proposals to participate in wells each month.

Todays 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%.

In addition, we continue to evaluate opportunities to increase our acreage across all the formations in which we have a presence, particularly the reopening Mississippi oil play in Oklahoma where we recently acquired 1,484 net acres with working interests of up to 100% and where we remain on track to operate our first well later this year.
"The positive response to todays Placing from both new and existing investors is hugely encouraging and represents an endorsement of the tremendous potential of our two-pronged growth strategy: participating with leading oil and gas companies in proven hydrocarbon formations such as the Bakken in North Dakota; and operating wells ourselves where we hold significantly larger interests.

I look forward to providing the market with updates on our progress in due course."
Admission and dealings
The Placing Shares and the Subscription Shares will rank pari passu in all respects with the Companys existing issued ordinary shares and will be equivalent to 15.0% of the enlarged issued share capital.

Application has been made for the admission of the Placing Shares and the Subscription Shares to trading on AIM and it is expected that admission will occur and that dealings will commence at 8.00 a.m.

on 9 March 2012.
For the purposes of the Financial Services Authoritys Disclosure and Transparency Rules, the Company announces that following the issue of the Placing Shares and the Subscription Shares, the Company will have 668,880,985 Ordinary Shares in issue ("Enlarged Share Capital").
The Company has no ordinary shares held in treasury.

The total number of voting rights in the Company will therefore be 668,880,985.

This figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSAs Disclosure and Transparency Rules.
Directors Dealings
The table below sets out the number of shares subscribed for by the Directors under the Subscription and their subsequent holdings.
Director
Subscription Shares
Subsequent Holding
% of Enlarged Share Capital
Outstanding number of options and warrants
Steven Snead
1,538,460
198,974,820
29.75
14,110,000
Ronald Harwood
2,923,070
27,541,250
4.12
1,660,000
** ENDS **
For further information on Magnolia Petroleum Plc visit www.magnoliapetroleum.com or contact the following: Steven Snead Magnolia Petroleum Plc +01 918 449 8750 Rita Whittington Magnolia Petroleum Plc +01 918 449 8750 Antony Legge / James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550 John Howes / John-Henry Wicks Northland Capital Partners Limited +44 (0) 20 7796 8800 Hugo de Salis St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Lottie Brocklehurst St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes Magnolia Petroleum Plc is an AIM quoted oil and gas exploration and production company focussed on the US.

Magnolia has an extensive and highly prospective portfolio of both producing and non-producing oil and gas interests, primarily located in the highly productive Bakken / Three Forks Sanish hydrocarbon formations in North Dakota as well as on the substantial and proven Woodford/Hunton reservoirs in Oklahoma and the oil rich Mississippi located in Oklahoma.

Currently, Magnolia has interests in 64 oil and/or gas producing properties.
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