Magnolia Petroleum Plc Correction: Trading update
06 Junio 2018 - 8:09AM
UK Regulatory
TIDMMAGP
Magnolia Petroleum plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
6 June 2018
Magnolia Petroleum plc ('Magnolia')
Correction: Trading Update
The trading update released earlier incorrectly made reference to Magnolia
requesting a suspension. The other details remain unchanged and the full text
of the corrected announcement is below.
Rita Whittington Magnolia Petroleum Plc +01918449 8750
Jo Turner / James Caithie Cairn Financial Advisers +44207213 0880
LLP
Daniel Gee Cornhill Capital Limited +44207710 9610
Lottie Brocklehurst St Brides Partners Ltd +44207236 1177
Frank Buhagiar St Brides Partners +44207236 1177
Ltd
6 June 2018
Magnolia Petroleum plc ('Magnolia')
Trading Update
Magnolia Petroleum plc, the AIM quoted US focused oil and gas exploration and
production company, announces the following update in respect of its ongoing
discussions with its bank.
In the Magnolia's recent operations update of 16 April 2018 it advised that
discussions with the group's bank to renegotiate a bank loan, which the bank
had previously agreed to extend, were progressing slowly following the sale of
the bank and change of management. Magnolia has been informed that the bank
will now not be extending the loan to Magnolia Petroleum, Inc. ("the Company"),
Magnolia's wholly owned subsidiary, and the Company has been given
approximately until 9 July 2018 to repay or refinance its loan. The bank has
put restrictions on the Company's account such this it is unable to effectively
manage its working capital.
If the Company is unable to do so in the time required, then Magnolia will be
likely to need to seek Chapter 11 bankruptcy proceedings in respect of the
Company in order to reorganise its affairs.
Magnolia had previously announced that it was undertaking a debt reduction
programme and, accordingly, has identified assets for sale. The Company had
started discussions with a number of parties and believes it will be able to
dispose of its North Dakota and certain Oklahoma interests in order to repay
the Debt Facility in full within the time limit provided. It is anticipated
that the Company will retain a portfolio interests in approximately 62 wells
following the proposed disposals to satisfy the Debt Facility.
Pursuant to AIM Rule 15, this disposal will be treated as a fundamental change
of business and will require the consent of shareholders of Magnolia at a
general meeting. Given the urgency of the timing, Magnolia will shortly post a
circular and notice of general meeting ("Disposal Meeting") to all shareholders
to seek the requisite consent.
Magnolia is due to hold a general meeting on 7 June 2018 to consider its
cancellation from trading on AIM. Magnolia has received voting in favour of
the resolution in excess of 50 per cent. but less than 75 per cent. required
under the AIM Rules. Magnolia considers, in light of the information contained
in this announcement, that it is appropriate to adjourn the general meeting to
be held on 7 June 2018, which it will do immediately once it has started, to a
point in time so as to coordinate with the Disposal Meeting to allow
shareholders time to better consider the situation as a whole.
As a result of the above, there is a risk that Magnolia will not be able to
publish its audited financial information for the year to 31 December 2017 by
30 June 2018 and it is considering its options.
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
For further information on Magnolia Petroleum plc visit http://
www.magnoliapetroleum.com/ or contact the following:
Rita Whittington Magnolia Petroleum Plc +01918449 8750
Jo Turner / James Caithie Cairn Financial Advisers +44207213 0880
LLP
Daniel Gee Cornhill Capital Limited +44207710 9610
Lottie Brocklehurst St Brides Partners Ltd +44207236 1177
Frank Buhagiar St Brides Partners +44207236 1177
Ltd
END
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June 06, 2018 09:09 ET (13:09 GMT)
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