Magnolia Petroleum Plc / Index: AIM /
Epic: MAGP / Sector: Oil & Gas
3rd January 2018
Magnolia Petroleum
plc
(‘Magnolia’ or
‘the Company’)
Production Update
for Three US Onshore Wells
Magnolia Petroleum plc, the AIM quoted US focused oil and gas
exploration and production company, is pleased to provide a
production update for three new wells that have recently come
online and are now producing from the Mississippi Lime formation in
the prolific STACK (‘Sooner Trend Anadarko (basin) Canadian,
Kingfisher counties’) play in
Oklahoma in which the Company has
a working (‘WI’) / net revenue interest (‘NRI’), alongside leading
operators such as Continental Resources.
Fazio 1-13MH (‘the Fazio Well’),
Kingfisher County, Oklahoma
The Fazio Well, which is operated by Oklahoma Energy
Acquisitions, is a recently completed horizontal Mississippi Lime
Formation test. Initial Production Rates (‘IP’) for the Fazio
Well were 644 BOPD and 1,507 MMCFD (794 BOEPD) and during the first
full month of production averaged over 589 BOPD and 1,338 MCFD,
significantly higher than the pre-drill projected IP of 258 BOPD
and 1,085 MCFD (367 BOEPD). The current projected EUR (‘Estimated
Ultimate Recovery’) is 240 MBO and 850 MMCFG. Magnolia has a
0.796% WI and a 0.597% NRI in the Fazio Well.
Foree 1-18-7XH (‘the Foree Well’),
Blaine County, Oklahoma
The Foree Well, a horizontal Mississippi Lime Formation test
that was completed in April 2016 by
the operator Continental Resources, was reported as having IP rates
of 1,411 BOPD and 3,900 MCFD (1,801 BOEPD). As at the end of
November 2017, the Foree Well had
recovered over 142 MBO and 715 MMCFG and is currently producing at
a rate of 90 BOPD and 613 MCFD (151 BOEPD). The projected EUR for
the Foree Well is 362 MBO and 1.97 BCFG. Already 39% of the
projected ultimate oil recovery and 36% of the projected ultimate
gas recovery have been recovered. Magnolia has a carried
WI of 0.39% and a 0.29% NRI in Foree.
Houses Quarter 10-7-6XH (‘the Houses Quarter Well’),
Blaine County, Oklahoma
The Continental Resources operated Houses Quarter Well, a
horizontal Mississippi Lime Formation test which was completed in
May 2017, had an IP of 716 BOPD and
1,702 MCFD (886 BOEPD). As at end of November 2017, 63 MBO and 245 MMCF have been
recovered and the Houses Quarter Well is currently producing over
205 BOPD and 1,200 MCFD (325 BOEPD). The projected EUR is 222 MBO
and 1.4 BCFG and within just six months 28% of the projected oil
reserves and 18% of the projected gas reserves have been
recovered. Magnolia has a carried WI of 0.39% and a 0.29% NRI
in the Houses Quarter Well.
Magnolia CEO, Rita Whittington
said, “These three wells highlight the prolific nature of the
STACK play in Oklahoma which,
together with the SCOOP, is an area where we are increasingly
focusing our activity, both independently as well as via our
US$18.5 million capital management
agreement with Western Energy Development LLC. We expect to
invest the initial US$500,000 from
WED and subsequent tranches we receive under the agreement into
leases in these two plays which, as well as earning fees for
Magnolia, will also result in us gaining a free carry into new
wells drilled. Our focus on the highly active STACK and SCOOP
plays, together with our agreement with WED promise to kickstart
our strategy to significantly grow our production and reserves
through the acquisition and development of leases alongside
established operators such as Continental Resources. As a result,
we are confident the year ahead will see a step-up in activity and
I look forward to providing further updates on our progress.”
The information contained within this announcement constitutes
inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014.
Glossary
‘BOPD’ means Barrels of oil per day
‘BOEPD’ means Barrels of oil equivalent per day
‘M’ means Thousand
‘MBO’ means Thousand Barrels of Oil
‘Mcfd’ means Thousand Cubic Feet per Day
‘MM’ means million (thousand thousand not
million million), as used in oilfield and heat content units such
as MMSTB and MMBtu
‘MMBbl’ means Million barrels
‘MMcfd’ means Million Cubic Feet per Day
* * 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 |
Nick Beeler |
Cornhill Capital Limited |
+44207710 9610 |
Lottie Wadham |
St Brides Partners Ltd |
+44207236 1177 |
Frank Buhagiar |
St Brides Partners
Ltd |
+44207236
1177 |