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Half-yearly Results
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, announces its half-yearly results for the six month period ended 30 June 2015.
Operational Overview
– 26% year on year increase in number of producing wells to 195 in proven US onshore formations such as the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime, Woodford/Hunton, Oklahoma, (H1 2014: 155)
– Elected to participate in 28 new wells – 10 wells currently at various stages of development
– Daily production of 309 boepd as at 1 August 2015 compared to 281 boepd as at 1 January 2015 due to number of wells commencing production
– Total net 1P oil and condensate reserves of 873 Mbbl of oil and 2,454 MMcf of natural gas as at 1 August 2015 with NPV US$20.888 million – provides significant asset backing to current market valuation
– Taking advantage of lower costs to undertake own operated vertical well drilling programme in Oklahoma targeting multiple conventional formations including the Mississippi Lime/Chat, Redfork Sand and the Lower Skinner Sand
– Strong pipeline of opportunities across all formations both as participant and operator – over 600 potential drilling locations on existing acreage
Financial Overview
– H1 2015 revenues of US$1,083,998 (H1 2014: US$1,755,459) – reflects a more than 50% year on year reduction in the oil price
– Half year EBITDA (after removing loss on foreign exchange) of US$(560,919) compared to US$699,397 during six months to 30 June 2014
– 2% increase in tangible assets to US$11,511,266 compared to US$11,294,373 as at 31 December 2014
– US$1,851,232 cash balances as at 30 June 2015 compared to US$9,210 as at 30 June 2014
– £1 million raised via a placing to fund new drilling
Magnolia CEO, Steven Snead said, “With net production up 10% to 309 boepd as at 1 August 2015, and our producing well count 9% higher at 195 as at 30 June 2015, the first half of 2015 has seen further excellent progress made on the ground in delivering on our strategy to prove up the reserves on our US onshore leases through drilling. Together with our own operations and continued participation in drilling activity alongside leading operators, we expect the momentum behind the business to be maintained going forward despite low oil prices, and I look forward to providing further updates on our progress.”
