LONDON (Alliance News) - Magnolia Petroleum PLC saw its shares jump 24% Friday, after it said net daily production increased in the three months to July 1, as a number of its wells commenced production.
The AIM-quoted US onshore focused oil and gas exploration and production company said net production stood at 257 barrels of oil equivalent per day as at July 1, compared to 150 barrels of oil equivalent per day on April 1, as wells in which it holds a larger-than-average interest have come into production.
Magnolia said that thanks to the combination of growing revenues from production and its USD5 million credit facility, it is well placed to deliver on its objective to prove up the reserves on its leases.
Total net proved and probable reserves currently stand at 749 million barrels of oil and condensate, and 2,554 million cubic feet of gas.
"At USD31.83 million, the value of our proven reserves provides Magnolia with considerable asset backing, particularly when compared to our market valuation. From current levels, our reserves are set to grow strongly. Not only do we have interests in 79 wells at various stages of development but we continue to receive multiple drilling proposals," said Chief Operating Officer Rita Whittington in a statement.
The company said a growing proportion of the drilling proposals are targeting the Woodford formation in Oklahoma, which it said is increasingly viewed as the more "productive formation".
I have just received two emails from ProactiveInvestors informing me that a price monitoring extension has been requested on today's Magp trading followed by a second request for the same purpose . Can someone enlighten me please ?
What a great day! I have the feeling that the sp will drift down again because, hey, this is AIM, but spikes like these(if it turns out to be)are good to bolster the optimism. I guess the BOD deserve a pat on the back(or a respectful hi5 in the case of the lady)for gritting their teeth and just getting on with it. And thanks to the Man of the Hour(the Hour that seems to have lasted 6 months!), the Entertainments Officer, Robsky. (While not forgetting the other contributions, he did keep it going didn't he? IMO). I will now crawl back into the woodwork and cackle over my 1.5 million+ oozing, oily eggs. ATB.
Hi. Have just been digesting all aspects of this morning's update. As expected there is no coverage on Woodford-Hunton simply because there are no base measurements for it. Also, operators are being coy on Springer which I believe will play a strong role in reserves in time to come. Additionally, no value is attached to lease assets in OK. Many of them are alongside/adjacent to productive pads. Historically more than 600000 wells have been drilled in the state - many more will follow over the next couple of years. 200-odd rigs are working at a frenetic pace.
Very glad to see 250boepd has been achieved, which ties in with my earlier estimate of the $600k p/month being crossed.
So you will be on iron rations after today's top-up. :)
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