"Our US$5 million reserves backed credit facility as well as our recently reported full year revenues of US$2.4 million show how far Magnolia has come in a short space of time. We are successfully establishing a track record of strong growth, and we are highly confident we will build on this further in the current year and beyond."
"More horizontal wells need to be drilled to the Woodford before Magnolia's reserves in the formation are upgraded but we are confident the Woodford will play a major role in Magnolia's reserves growth going forward, and even has the potential to surpass our original expectations for our Mississippi Lime reserves".
Potential to SURPASS original expectations to include "sweet spots" in the lime and add to previously unqualified reserves in the underlying Woodford formation across much of our acreage.
"Our overall objective is to prove up the reserves on our US onshore leases and here too excellent progress is being made with Magnolia's PDP reserves now standing at US$8.4 million having been US$919,000 in October 2011.
PDP reserves alone are equal to 0.92p per share this excludes oil production of 150 - 200 BOEPD with other reserves and Montana alone at cost price valuation of 0.5p per share.
Over the medium term however the upwards trend for Magnolia's net production is intact thanks to our fast growing well count, a long pipeline of drilling opportunities, and a rising average interest in wells. Our well count has increased from 64 at the time of our AIM IPO to 184 by end of December 2013, and it has since grown to 227. Meanwhile over the same time frame we have upped our average net revenue interest to over 3% from 0.6%.
"While 2012 saw us acquire 13,500 net mineral acres in liquids rich US onshore plays, 2013 saw a step up in our drilling activity alongside established operators such as Devon Energy and Statoil, as we focused on growing our production generated revenues to fund more drilling to prove up the reserves on our leases. Revenue growth is therefore a key performance indicator and for 2013 we reported a 244% jump in net revenues to US$2,443,244, which followed the previous year's 194% increase to US$709,395.
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