LONDON (Alliance News) - Magnolia Petroleum PLC said Friday that it has disposed of 24 interests in non-core wells in Alabama, Texas and Florida in five individual packages for USD241,000 as part of its portfolio management programme.
The AIM-listed US onshore-focused oil and gas exploration and production company said the 24 smaller interests in non-core wells have been sold for a total consideration of USD241,000, a 190% increase on the USD83,000 valuation assigned to the combined proved and developed producing wells in its latest reserves report on July 1, 2014.
Magnolia Petroleum said the disposals are in line with its on-going management of its portfolio of leases covering over 13,500 net mineral acres in proven US formations. The proceeds will be reinvested into developing and proving up the reserves on its leases in proven US onshore formations such as the Bakken/ Three Forks Sanish in North Dakota and the Woodford/ Mississippi Lime in Oklahoma, said the company.
The 24 non-operated wells, in which Magnolia held minority interests ranging between 0.0068% and 1.54%, are located in Alabama, Texas and Florida and have been sold in five individual packages, said the company.
Magnolia said the value of its proved and developed producing reserves for our producing wells now stands at more than USD9 million, and that proven reserves have been independently valued at USD31.832 million.
"With a remaining 147 producing wells, 79 additional wells at various stages of development and over 600 potential drilling locations on our acreage, there remains considerable scope for further significant growth, as we prove up the reserves on our leases through drilling," said Chief Oprating Officer Rita Whittington.
Shares in Magnolia Petroleum were Friday trading 2.86% higher at 1.62 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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