🕐06.11.13 - 09:27 Uhr
MAGNOLIA PETROLEUM: 4 NEW WELLS COMMENCE PRODUCTION BRINGING TOTAL TO 129 IN PRO
VEN US ONSHORE PLAYS - FURTHER STRONG GROWTH IN PRODUCTION AND RESERVES EXPECTED WITH 51 WELLS UNDER DEVELOPMENT
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
6 November 2013
Magnolia Petroleum Plc (Magnolia or the Company)
Operations Update
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to provide an operations update across its portfolio of interests in proven US onshore formations including the Bakken, North Dakota and Mississippi Lime, Oklahoma.
This update is in line with the Companys strategy to rapidly build production through drilling and in the process prove up the reserves on its leases.
Commencement of production at the following four wells brings total number of producing wells in which Magnolia has an interest to 129:
Well Name
Targeted
Formation
Operator
Gross IPR
Magnolias NRI %
Net IPR
Sullins 1-6MH
Mississippi Lime, Oklahoma
Devon Energy
296 boepd
3.718
11 boepd
Reta#1*
Bois D Arc, Chimney Hill, Viola, Simpson, Oklahoma
Basis
130 bopd (gas being tested)
2.31
3 bopd
LeMarr#1*
Oswego, Oklahoma
Stephens Exploration
15.7 bopd
4.67
0.75 bopd (payout in less than 12 months)
Omega 1-33H
Hunton, Oklahoma
Equal Energy
692.03 mcf/d
0.799
5.53 mcf/d
*Vertical well
Participation in the following two wells at an aggregate net cost of US$349,369 brings total number of wells under development to 51:
Well Name
Targeted Formation
Operator
Magnolias WI/NRI%
Net Cost to Magnolia
Voise 24-1WH
Mississippi, Woodford, Oklahoma
Devon Energy
9.375/7.5
US$330,970
Nevada 1-29**
Hunton, Simpson Dolomite, Oklahoma
Phoenix Oil and Gas
6.25/5.0
US$18,399
** re-entry into existing well
Rita Whittington, COO of Magnolia, said, "We now have interests in 129 producing wells in established US onshore formations.
With an additional 51 wells at various stages of development, we are well placed to significantly grow this total in the near term.
Furthermore, as the Voise and Nevada wells demonstrate, we are not only continuing to replenish our pipeline of new drilling activity alongside leading operators such as Devon Energy, but with interests of 7.5% and 5.0% respectively, we are also increasing the average size of our net revenue interests.
As a result, the strong growth seen to date in Magnolias daily production and the value of our proven (P1) reserves, which as at 1 August 2013 stood at 214 boepd and US$40.721m respectively, is set to continue, as we focus on our goal to build shareholder value."
Existing well update
The Company has been informed by the relevant operator of a change in status in the following well in which it is participating:
Well
Targeted
Formation
Status
NRI %
Operator
Parmley 1-1WH
Mississippi, Woodford, Oklahoma
Expected to spud within the next 30 days
Up to 14.06
Devon Energy
** ENDS **
Glossary
boe means barrels of oil equivalent: a unit of energy based on the approximate energy released by burning one barrel (42 US gallons or 158.9873 litres) of crude oil.
There are 42 gallons (approximately 159 litres) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700 kilowatt hours (kWh).
The value is necessarily approximate as various grades of oil have slightly different heating values.
BOE is used by oil and gas companies in their financial statements as a way of combining oil and natural gas reserves and production into a single measure.
boepd means barrels of oil equivalent per day
bopd means barrels of oil per day, Abbreviation for barrels of oil per day, a common unit of measurement for volume of crude oil.
The volume of a barrel is equivalent to 42 US gallons
IPR means initial production rates
Mcf/d means Thousand Cubic Feet per Day
NRI means net revenue interest
WI means working interest
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 129 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
129
Being Drilled / Completed
16
Elected to participate / waiting to spud
35
TOTAL
180
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Frank Buhagiar
St Brides Media & Finance Ltd
3 St Michaels Alley, London, EC3V 9DS
www.stbridesmedia.co.uk
Tel: 0207 236 1177 | Mob: 07788410221 | Twitter: @StBrides1