Magnolia Petroleum Share News (MAGP)

Magnolia Petroleum has reported increases in production and the value of its assets as it seeks to build rapidly in oil-rich US regions.The AIM-listed oil and gas company said net production had increased by 75% to 214 barrels of oil equivalent per day at August 1st from the start of the year, with further growth to come. Its proved and probable reserves were valued at $47m (£30m) on August 1st, up from $44m in January.The increases were identified in a competent person's report by Moyes & Co, an energy consultancy firm. Magnolia said it expected future upgrades because only nine of 45 new wells announced between January 1st and August 1st had contributed to the reserves increase.Magnolia's business is focused on potentially fertile US oil grounds in Oklahoma and North Dakota. It is seeking to fund its activities internally through rapid development of existing sites.Rita Whittington, Chief Operating Officer at Magnolia, said: "We expect net production to continue to grow strongly. Increasingly new drilling activity is being funded using internally generated revenues and, as a result we are moving closer towards achievingself-funding status."With over 600 potential drilling locations on over 13,500 net mineral acres in proven US onshore plays, we believe we are on course to generate substantial value for all our shareholders."As of 15:19PM shares of the firm were down by 1.1% to the 2.45p mark.