Magnolia Petroleum invests in 11 new oil wells

Magnolia Petroleum has invested in 11 new oil wells in the US at a net cost of 1.4m dollars.The company is participating in four wells in Dakota and seven wells in Oklahoma. Production has commenced on three wells in the Mississippi Lime formation in Oklahoma. They include the Wolf 1H-25, Nighswonger Farms 2815 1-13H and the McClure 36-2H which have an initial production rate of 2.4 barrels of oil equivalent per day (boepd), 2.4 boepd and 0.05 boepd, respectively. "The speed with which we have started to deploy the recently raised funds demonstrates the high level of activity in US onshore liquids rich plays, the large number of opportunities we continue to see and, more specifically, the considerable potential of the 13,500 plus net mineral acres we hold," said Chief Operating Officer, Rita Whittington.She said the new investment is in line with the company's strategy to grow net production and revenues.The company has also acquired a 0.328% working interest in the Betty 22-24-10 1H, a horizontal well operated by Chesapeake Energy.The well has been producing from the Mississippi Lime since October 2012 with a reported initial production rate of 128 boepd.Shares fell 1.92% to 2.55p at 11:16 Tuesday.RD