LONDON (Alliance News) - Magnolia Petroleum PLC, the oil and gas production company primarily focused on onshore projects in the US, will continue with a two-pronged expansion plan using every dollar it can, Chief Executive Steven Snead told Alliance News.
The company is expanding its portfolio through non-working investments and projects that they will operate themselves.
"Every dollar that is not used for overheads, is and will be put into new opportunities. We are currently receiving between three and four [non-working] proposals a week," said Snead.
"We are aiming for quantity, increasing the volume of wells we have. One well will not make the business," he added.
The company had 61 producing wells when it listed on AIM in December 2011, and now boasts 161 producing wells. It has also identified a further 600 potential wells on top of its current acreage.
As a result, the company's proved reserves have increased to USD32 million in July, from USD1.5 million in October 2011 when it listed on AIM.
Further to the volume of wells it plans to acquire, it aims to increase its average interest in its projects. It currently has an average interest of 3% in its 161 producing wells, said Snead.
"We have the capacity to spud six to seven wells a year ourselves, and expect to spud one further well before the end of 2014. There will be a lot of progression on the non-working interest investments," he added.
"Our Woodford project is also starting to show value, so expect further reports on the project," said Snead.
Shares in Magnolia Petroleum were Wednesday afternoon trading 0.5% lower at 1.378 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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