Magnolia Petroleum plc, a U.S.-based oil and gas E&P company, has announced that it has signed a non-binding agreement with a third party for the sale of all its wells in which it has varying interests in North Dakota, being approximately 31 wells, for a total consideration of $1.5 million, according to a press release. In addition, the company announces the sale of its 100 percent interest in the Roger Swartz #1 well in Oklahoma for approximately $30,000. The proposed disposal is in line with the company’s debt reduction program and, subject to shareholder consent and completion, will substantially clear a large portion of the outstanding $2-million balance of the reserve-based lending facility of its wholly owned operating subsidiary, Magnolia Petroleum, Inc. As detailed in the company’s announcement of June 7, 2018, the Company embarked on a debt reduction program in response to the bank’s decision not to extend the lending facility and its requirement that the full outstanding amount be repaid or refinanced by July 9, 2018.
