US-focused oil and gas explorer Magnolia Petroleum has raised £300,000 through a share placing to pay down debt.
The company issued 214.3 million shares at 0.14 pence per share through broker Cornhill Capital Ltd..
“In response to highly volatile oil markets, the directors have been focused on ensuring the business is well placed to withstand an extended period of the current oil price downturn and also any further deterioration in market conditions,” said chief operating officer Rita Whittington.
“A comprehensive review is underway to realign our cost base with today’s markets and in tandem with this, the net proceeds of the placing will be used to reduce net debt and further strengthen Magnolia’s balance sheet,” Whittington added.