LONDON (Alliance News) - Magnolia Petroleum PLC Thursday said it has started production at its Parmley 1-1WH well site and is participating in six new wells in Oklahoma at a cost of USD899,808.
The US-focused onshore oil and gas production company, which takes small stakes in multiple wells in highly prospective shale plays, said the Parmley 1-1WH well has started production at a gross rate of 445 barrels of oil equivalent per day.
The company holds a 12.187% stake in the site and so has added roughly 54 barrels of oil equivalent per day net production to its portfolio.
"We expect to quickly recover our share of the costs of drilling Parmley, even after taking into account decline rates. In line with our strategy, revenues generated from Parmley will be reinvested, alongside our recently increased credit facility, into further drilling activity to prove up the reserves on our leases in US onshore plays," said Chief Operating Officer Rita Whittington in a statement.
Magnolia also said that it is now also participating in a further six wells on its Oklahoma leases.
The company said it has taken a 5.41% working interest and a 4.1% net revenue interest in the Rothermel 4 site at a costs of USD200,116, and a 5.41% working interest and a 4.1% net revenue interest in the Lemmons 6MH and Lemmons 5WH sites, at a combined cost of USD409,477.
Magnolia said it has also taken a 4.18% working interest and a 3.34% net revenue interest in the Cummings 2H site, a 1.95% working interest and a 1.56% net revenue interest in the Moe Jerome 1WH site, and a 10.94% working interest with a 8.75% net revenue interest in the Bowen 1-30 site.
Magnolia shares were down 3.9% at 1.25 pence before midday Thursday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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