LONDON (Alliance News) - Magnolia Petroleum PLC on Friday issued a third-quarter update on its operations across proven and producing US onshore hydrocarbon formations, with the US focused oil and gas exploration and production company welcoming the beginning of production at seven new wells.
Seven new wells commenced production bringing the total number of producing wells to 202 as at end of the third quarter of 2015.
It chose to participate in 10 new wells targeting the Woodford formation in Oklahoma, with all of those wells operated by Continental Resource, and the wells are targeting gas in two sections.
It said it diversified its mix of products to a "more even" oil to gas ratio. It said that current production is 56/44 compared to 70/30 in January 2015 oil to gas. IT said that gas markets have local supply/demand dynamics which tend to be independent of global oil prices, providing further diversification to Magnolia's producing well portfolio.
Daily production of 309 barrels of oil per day at the start of August measured up against 281 barrels at the start of January due to the number of wells commencing production.
Shares in Magnolia Petroleum were up 23% at 0.560 pence on Friday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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