On May 20, Magnolia Petroleum Plc increased the borrowing base of its credit facility to $2.75 million, up from $2.1 million, the company said.

The increase to the borrowing base followed an increase to the value of the net proved and developed producing (PDP) reserves, the company said. The PDP reserves’ value was increased to about $8.4 million, Magnolia added.

On Oct. 22, 2013, the company had agreed to a three-year revolving credit line with a $5 million nominal value and interest, Magnolia said. Initially, the borrowing base was set at $1.6 million, the company noted.

The credit facility, along with revenues from production, funds the company’s drilling activity, Magnolia said.

"This is the second increase in the borrowing base limit since we secured the credit facility in October 2013. The first was based on the strong trading performance as detailed in the recent full year results which included a 244% jump in revenues to US$2,443,244 and EBITDA of US$975,622; while today's increase is based on the progress made in growing our PDP reserves. With US$2.75 million available from the credit facility and revenues growing strongly, we are well placed to prove up the reserves on our leases, and in the process generate value for shareholders,” said Rita Whittington, COO.

Magnolia Petroleum Plc acquires and develops oil and natural gas properties in the United States, including in the Bakken. Its main office is in Broken Arrow, Okla. It is incorporated in the U.K.