Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
4 March 2014
Magnolia Petroleum Plc (Magnolia or the Company)
Participation in Two New Wells in Oklahoma
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce its participation in two new wells in Oklahoma, in line with its strategy to rapidly build production and prove up the reserves on its leases in oil rich formations, including the Bakken in North Dakota and Woodford and Mississippi Lime in Oklahoma.
Participating in the following two wells at an aggregate net cost of US$263,708:
Well Name
Targeted Formation
Operator
Magnolias WI/NRI%
Net Cost to Magnolia
Jimmy 1-28H
Woodford, Oklahoma
Red Fork Energy
3.777/3.022
US$139,662
Peters 1-27H
Woodford, Oklahoma
Paul Gillham
5.208/4.167
US$124,046
Increase in interest in Skunk Creek wells, North Dakota & Estimate of Reserves
The Company has increased its interest in the spacing unit in North Dakota where the Skunk Creek 14H and Skunk Creek 15H wells are currently producing from the Bakken and Three Forks Sanish formations.
Magnolia now holds a 0.90% and 0.675% working/net revenue interest (previously 0.60% and 0.45% respectively) in both of the above wells and also the four infill wells that are to be drilled on the unit in the near term, as detailed in the announcement of 20 January 2014.
The operator, Kodiak Energy, has estimated a total of 4.976 million barrels of oil and 2.88 Bcf of gas can be recovered from the Skunk Creek spacing unit by drilling eight wells, four each to the Bakken and Three Forks Sanish formations, based on the per well estimate provided in Table 1 below.
The total estimated level of reserves attributable to Magnolia on the Skunk Creek spacing unit is therefore 33,600 barrels of oil and 19.44 MMCF of gas.
Rita Whittington, COO of Magnolia, said, "Jimmy and Peters bring the total number of wells in proven US onshore formations in which we have an interest to 205, more than three times the number at the time of our Admission to AIM in November 2011.
We have over 600 potential drilling locations on our leases, and with the multiple proposals we are receiving to participate in new wells, we expect to build on the excellent growth seen to date.
Meanwhile, on-going leasing activity allows us to add to the 13,500 net mineral acres we hold, including those leases in which we already have an interest such as Skunk Creek.
The operators estimate of recoverable reserves at Skunk Creek illustrates the prolific nature of the Bakken and Three Forks Sanish formations and bodes well for our other leases in North Dakota including the Statoil operated Jake wells.
I look forward to providing further updates on our progress in due course.
Table 1: Kodiak Energys estimates for the recovery of reserves at the Skunk Creek Spacing unit, North Dakota
Middle Bakken
Three Forks Sanish
Estimated Ultimate Oil Recovery (MBO)
790
454
Estimated Ultimate Gas Recovery (MMCF)
457
263
** ENDS **
Glossary
Bcf means billion cubic feet of gas
MBO means thousand barrels of oil
MMCF means million cubic feet of gas
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
+44 207 382 1100
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 142 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
142
Being Drilled / Completed
16
Elected to participate / waiting to spud
47
TOTAL
205
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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