LONDON (Alliance News) - Magnolia Petroleum PLC Wednesday said five wells in which it has an interest have begun producing and it has recieved a USD1.0 million payment for consulting services it provided, money it will use to fund more drilling.
In a statement, Magnolia said it has been notified by operator Kodiak Exploration that production has started at the four Skunk Creek wells in North Dakota, while Chesapeake has told it that the Cummings 2H well targeting the Mississippi Lime in Oklahoma has started producing. Together, the additional production has added 47 barrels of oil equivalent per day to Magnolia's daily production figures.
"Production will naturally decline from reported levels before stabilising at lower rates," it said.
In addition, Magnolia has recieved a USD1.0 million payment for consulting services provided to an international company that it didn't name and which is acquiring an oil and gas project in Oklahoma.
The USD1.0 million payment will provide funding for additional drilling as the company looks to further increase revenue from production, said Rita Whittington, chief operating officer.
"With a pipeline of wells waiting to spud, and continual drilling proposals coming in, we believe we are well placed to deliver value for shareholders," Whittington said in the statement.
Magnolia Petroleum's shares were up 4.03% to 1.55 pence per share on Wednesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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