🕐28.06.13 - 09:27 Uhr
MAGNOLIA PETROLEUM: 59 BOEPD INCREASE IN NET PRODUCTION THANKS TO STRONG INITIAL
PRODUCTION AT GUSTAFSON BAKKEN WELL, NORTH DAKOTA,
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
28 June 2013
Magnolia Petroleum Plc (Magnolia or the Company)
Excellent Initial Production at Gustafson Well in the Bakken, North Dakota
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to report an update on its activities in proven US onshore formations including an initial production rate of 1,216 boepd for the Marathon Oil operated Gustafson 31-30H well in the Bakken Formation, North Dakota in which Magnolia holds a 4.071% net revenue interest.
Commencement of Production
The Company has been informed by the relevant operator that production has commenced at the following four wells, with the Initial Production Rate (IPR) as set out below:
Well Name
Targeted
Formation
Operator
Gross IPR
Magnolias NRI %
Net IPR
Gustafson 31-30H
Bakken, North Dakota
Marathon Oil
1,216 boepd
4.071
50 boepd
Condit 1-5H
Woodford, Oklahoma
Continental Resources
1,546 boepd
0.5
7.7 boepd
Voise 1-10H
Mississippi Lime, Oklahoma
Devon Energy
105 boepd
1.25
1.3 boepd
Joan 1-21*
Mississippi Lime, Oklahoma
Tessara Energy
12 bopd
2.812
0.3 bopd
*Joan 1-21 is a vertical well
Rita Whittington, COO of Magnolia, said, "We are delighted with the initial production rate for the Gustafson well which demonstrates the prolific nature of the Bakken formation in North Dakota.
Combined with a 4% NRI in the well, net production attributable to Magnolia from Gustafson is currently 50 boepd.
As a result, this well alone represents a 40% increase on the 122.5 boepd reported in the Competent Persons Report (CPR) as at 31 December 2012.
Since then, in addition to Gustafson, a number of new wells have come on stream and we therefore expect our next CPR to report a significant increase in production as at 31 December 2013.
"With Gustafsons excellent results in mind, we are looking forward to receiving the initial production rate for the Helgeson well, situated close to Gustafson, in which we also hold a 4% NRI, as we look to continue to increase net production and prove up reserves on the 13,500 plus net mineral acres we hold in proven US onshore formations."
Existing well updates
The Company has been informed by the relevant operators of a change in status in the following wells in which it is participating:
Well
Targeted
Formation
Status
NRI %
Operator
Sullins 1-6MH
Mississippi Lime, Oklahoma
Completed
3.718
Devon Energy
JKL 1-08 H
Mississippi Lime, Oklahoma
Completed and waiting on frac
1.719
Devon Energy
Murl#1
Wilcox, Oklahoma
Expected to spud within 10 days
3.047
Basis
** ENDS **
For further information on Magnolia Petroleum Plc visit www.magnoliapetroleum.com or contact the following:
Steven Snead
Magnolia Petroleum Plc
+01 918 449 8750
Rita Whittington
Magnolia Petroleum Plc
+01 918 449 8750
Jo Turner / James Caithie
Cairn Financial Advisers LLP
+44 20 7148 7900
John Howes / Alice Lane / Luke Cairns
Northland Capital Partners Limited
+44 20 7796 8800
Lottie Brocklehurst
St Brides Media and Finance Ltd
+44 20 7236 1177
Frank Buhagiar
St Brides Media and Finance Ltd
+44 20 7236 1177
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration and production company.
Its portfolio includes interests in 117 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich Mississippi Lime and the substantial and proven Woodford and Hunton formations in Oklahoma.
Summary of Wells
Category
Number of wells
Producing
117
Being Drilled / Completed
11
Elected to participate / waiting to spud
30
TOTAL
158
This table excludes four out of six wells acquired as part of the acquisition of 800 gross acres with a 100% working interest in Osage County, Oklahoma, as announced on 10 February 2012.
These four wells are currently shut in and will require a workover programme at some point in the future to bring back into production.
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