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
LLP |
+44207213 0880 |
Colin Rowbury |
Cornhill Capital Limited |
+44207710 9610 |
Lottie Brocklehurst |
St Brides Partners Ltd |
+44207236 1177 |
Frank Buhagiar |
St Brides Partners
Ltd |
+44207236
1177 |
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
spud |
43 |
TOTAL |
212 |