LONDON (Alliance News) - Magnolia Petroleum PLC Wednesday said four new sites have began producing, and it is participating in two new wells in Oklahoma.
The AIM-listed company that buys up leases on oil- and gas-rich lands in the US and then small stakes in the operators that drill them, said its four previously announced new wells have began producing, bringing the total number of producing wells in which Magnolia has an interest to 129.
The company said the gross inflow performance relationship at its newly producing Sullins 1-6MH is expected at 296 barrels of oil equivalent per day and at Reta No. 1 is expected at 130 barrels of oil per day.
Inflow performance relationship is a mathematical tool used in production engineering to assess well performance by plotting the well-production rate against the flowing bottom hole pressure.
The company also said it is now participating in a further two wells at an aggregate net cost of USD349,369, which brings the company's total number of development wells to 51.
Magnolia's Chief Executive Stephen Snead told Alliance News in September that he is targeting a near-fivefold increase in the amount of oil the company's existing assets produce over the next four years, driving up revenues and profits as the company seeks to take advantage of the fracking boom sweeping the US.
Magnolia Petroleum shares were up 4.7% to 2.93 pence Wednesday morning.
The interview with Stephen Snead can be found at the URL below:
http://allapp.alliancenews.com/article?u=c26fbd13353a44cdbc0680f496df6f3b&a=1379083337962253000
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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