StockMarketWire.com - Magnolia Petroleum said negotiations regarding an extension of its bank facilities had been delayed because its lender was sold.

The company also said it was considering non-core asset sales as part of its debt reduction programme.

"Since the last extension, the company's bank has been sold and negotiations are slower than previously experienced,' Magnolia said.

However, the company said the rise in the oil price meant it was producing positive cash flow from its existing operations.

Working capital continued to be managed 'carefully' in light of future planned well drilling, it added.

At 31 March, the company said it had 119 producing wells in its portfolio and 11 new wells proposed.

At 1:47pm: [LON:MAGP] Magnolia Petroleum share price was 0p at 3.15p



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