Magnolia Petroleum Plc De-risked Participation in 16 New Wells, US
25 April 2017 - 4:06PM
UK Regulatory
TIDMMAGP
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
25 April 2017
Magnolia Petroleum Plc ('Magnolia' or 'the Company')
De-risked Participation in 16 New Wells in US Onshore Formations
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and
production company, is pleased to announce its participation in 16 new wells in
the prolific SCOOP and STACK plays in Oklahoma.
Magnolia recently participated in a new Continental Resources operated well,
the Foree 1-18-7XH, which was drilled to the Woodford formation. The operator
reported initial production rates of 1,411 bopd and 3,900 mcf per day
(equivalent to 2,061 boep/d). Due to the excellent production rates and
estimated reserves, an additional 13 increased density wells have also been
proposed within this same unit.
The second well on the unit, Houses Quarter 10-7-6XH, has already commenced
drilling with the remaining 12 wells to be drilled back to back. Magnolia's
share of the costs of drilling the initial Foree well was fully carried and
thus no cost was borne by the Company. Magnolia will fund its share of the
costs of the 13 proposed increased density wells. The estimated total
aggregate cost payable by Magnolia to participate in these 13 wells has been
estimated at US$45,000 however these infill wells have been substantially
de-risked by the initial well, thereby minimising the associated exploration
risk.
In addition, the Company is participating in the drilling of three initial
wells operated by Comanche Exploration Co. and Devon Energy for which
Magnolia's share of the drilling costs will be fully carried. Subject to the
results of these initial wells, Magnolia will bear the costs of any increased
density wells that may be proposed on these three spacing units. Further
updates will be provided once the wells have spud.
Magnolia CEO, Rita Whittington said, "In the space of a few weeks we have
announced our participation in 28 new wells, the majority of which are
increased density wells in the prolific SCOOP and STACK plays. These infill
wells have been substantially de-risked by the drilling of initial wells on the
relevant spacing units. In our view, the free carry on a number of initial
wells reported today is testament to the high standing of Magnolia's management
team and their negotiating skills which allows us to gain exposure to drilling
activity without initially having to put any of the Company's capital at risk.
I look forward to providing further updates on our progress, as we focus on
proving up the reserves on our leases and generating value for our
shareholders."
The information contained within this announcement constitutes inside
information stipulated under the Market Abuse Regulation (EU) No. 596/2014.
* * ENDS * *
For further information on Magnolia Petroleum Plc visit
www.magnoliapetroleum.com or contact the following:
Rita Whittington Magnolia Petroleum Plc +01918449 8750
Jo Turner / James Caithie Cairn Financial Advisers +44207213 0880
LLP
Colin Rowbury Cornhill Capital Limited +44207710 9610
Lottie Brocklehurst St Brides Partners Ltd +44207236 1177
Frank Buhagiar St Brides Partners +44207236 1177
Ltd
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration
and production company. Its portfolio includes interests in 212 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 156
Being drilled / completed 13
Elected to participate / waiting to 43
spud
TOTAL 212
END
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