Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
3 September 2014
Magnolia Petroleum Plc (`Magnolia' or `the Company')
Receives US$1 Million Consulting Payment and Well Updates
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, is pleased to announce that it has received
a US$1,002,000 payment for consulting services provided to an international
company acquiring an oil and gas project in Oklahoma. In addition, the Company
has been notified by the relevant operators that five wells in which it has an
interest have commenced production, generating a combined 47 boepd net to
Magnolia based on reported initial production rates (`IPR').
Commencement of production at the following wells:
Well Name Targeted Operator Gross IPR Magnolia's Net IPR*
NRI%
Formation
Skunk Creek Bakken, Kodiak 1,342.86 0.675% 9.06 boepd
4-8-17-13H North Dakota Exploration boepd
Skunk Creek Three Forks Kodiak 1,248.26 0.675% 8.43 boepd
4-8-17-13H3 Sanish, Exploration boepd
North Dakota
Skunk Creek Bakken, Kodiak 1,213.57 0.675% 8.19 boepd
4-8-17-14H North Dakota Exploration boepd
Skunk Creek Three Forks Kodiak 1,349.37 0.675% 9.12 boepd
4-8-17-14H3 Sanish, Exploration boepd
North Dakota
Cummings 2H Mississippi Chesapeake 370 boepd 3.34% 36. boepd
Lime,
Oklahoma
*Production will naturally decline from reported levels before stabilising at
lower rates
Rita Whittington, COO of Magnolia, said, "This payment of US$1 million for
consulting services will provide funding for additional drilling as we look to
further increase our revenues from production. Additionally we are delighted
with the IP rates for the four Skunk Creek wells in North Dakota and the
Cummings 2H well targeting the Mississippi Lime in Oklahoma, adding just shy of
50 boepd to our daily production figures. With a pipeline of wells waiting to
spud, and continual drilling proposals coming in, we believe we are well placed
to deliver value for shareholders."
** 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 Northland Capital Partners +44 20 7796 8800
Limited
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 152 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 152
Waiting on first sales / IP rates 14
Being drilled / completed 8
Elected to participate / waiting to 52
spud
TOTAL 226