LONDON (Alliance News) - Magnolia Petroleum PLC, an AIM-listed oil and gas exploration and production company focused on the US, said it expects drilling operations to begin at the Shimanek #2 vertical well in the state of Oklahoma by the end of July.
Magnolia owns 94% of the Shimanek #2 vertical well, which it also operates.
"We have been highly active on the ground, as evidenced by our imminent plans to spud our operated Shimanek #2 well which we estimate will have an USD8 per barrel operating cost. The economics of drilling this well and others we have identified on our operated leases are highly attractive even in the current oil price environment," Chief Operating Officer Rita Whittington said in a statement.
The news came with a second-quarter update, which showed that 11 new wells have begun producing, bring the total number to 195 at the end of June.
Whittington said there has been progress on Magnolia's non-operated leases.
"Since the turn of the year, 19 new wells have commenced production, bringing our total producing well count to 195. Set against a backdrop of volatile oil prices, this further demonstrates the relatively low costs and breakeven oil prices associated with the proven US onshore formations in which we are focused," the COO said.
Magnolia shares were up 7.0% at 0.658 pence on Monday morning in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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