LONDON (Alliance News) - Magnolia Petroleum PLC Wednesday said production has started on two of its part-owned wells in Oklahoma, bringing its total number of producing wells to 170.
The US-focused onshore oil and gas production company, which takes small stakes in multiple wells in highly prospective shale plays, said the Cummings 31-28-12-1H well has begun drilling to target the Mississippi Lime play and the Voise 1-24 H well has started drilling with a target of the Woodford formation.
The Cummings well achieved gross initial production rates of 525.52 barrels of oil equivalent per day, providing Magnolia with 17.56 barrels per day through its 3.34% net revenue interest while the Voise well started with production rates of 143.38 barrels per day, giving Magnolia 9.15 barrels per day through its 6.38% interest.
"These impressive initial production rates from two wells targeting both the Woodford and the overlying Mississippi Lime add a total of 26.71 barrels of oil equivalent per day to our daily production and brings our total producing wells to 170," Chief Operating Officer Rita Whittington said in a statement.
"Even allowing for expected decline rates, this represents a significant increase in our net production which stood at 150 barrels of oil equivalent per day as at April 1, 2014," Whittington added.
Magnolia shares were up 4.4% to 1.20 pence on Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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