Yes the RNS was to me a indication that the BOD want to emphasise the strengths of Maggie to potential investors and I hope we more of this going forward. We need volume to really begin motoring so hopefully Rita will provide more good news sooner rather than later.
On Friday, Magnolia Petroleum reported having received proposals from operators like Devon Energy, Newfield Exploration, Chesapeake Energy and Kodiak Exploration for drilling of increased density wells across US onshore producing leases. Since 1st January 2014, Magnolia has decided to participate in nine increased density wells on leases held by production; while application for another 12 such wells have been filed by the respective operators. Magnolia has more than 3% interest in most of these wells. Magnolia stated that around 75% of ~600 proven development locations in Oklahoma and North Dakota were increased density wells. Magnolia’s asset base encompasses up to 13,500 net mineral acres of proven US onshore formations. Increased density wells/Infill wells help maximise the recovery of reserves on leases held by production.
Our view: Proposals from prominent and experienced operators for potential drilling at Magnolia’s interests in the Bakken, North Dakota and Mississippi Lime formations presents a good upside potential for the company. Development of additional horizontal wells on the underexplored Three Forks Sanish shale prospects, located near Bakken formation, could offer additional upside. With majority of proven plays in Oklahoma and North Dakota being increased density wells, we see a strong production pipeline, with relatively lower risk, and an impressive reserves growth for Magnolia. With upbeat development opportunities, Magnolia’s net 2P reserves of 1,437 million barrels (mmbls) oil & condensate and 5,124 million cubic feet (mmcf) gas could register significant jump in the near future. We reiterate our Speculative Buy rating.
It's been suppressed for so long and anyone getting onboard now is entering at the bottom imo. That trend line posted yesterday is pretty key and the SP is notably above the 20MA. Other items like the 5MA crossing the 20MA (in due course by looks of it) for example haven't happened for a bit. As mentioned to Chrisatron, weeks ago I've been adding 2.20p and sub. I'm looking for 2.50 and then 3p as near term targets.
Off to crack on with the main market now. Have a good day all.
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