Published on 3rd June 2012
Magnolia Petroleum, whose shares trade on the Alternative Investment Market, is run by Rita Whittington, an expert who has spent more than 30 years in the industry. As a senior director of two private American oil firms, her most recent ventures were immensely profitable. Now Whittington is hoping to generate similar returns for investors in Magnolia. The company buys oil and gas leases in North Dakota and Oklahoma, participates in drilling projects and generates cash when the oil is produced. The key to success lies in buying the leases at the right price and forming partnerships to drill wells at a reasonable cost so the business can expand without constantly asking shareholders for more money. Magnolia shares are 1.98p and can be volatile but the next couple of years should deliver strong growth, says The Financial Mail on Sunday´s Midas column.