LONDON (Alliance News) - Magnolia Petroleum PLC Monday said an updated report has shown a substantial increase in net daily production and the value of resources at the company.
The exploration and production oil and gas company with operations in the onshore US said the report showed a net daily production increase to 214 barrels of oil per day, a 75% increase on the 122.5 barrels of oil per day reported on December 31, 2012, and an increase in the value of net attributable proved and probable resources to USD47 million from USD44 million in January.
The company said the Competent Person's Report was carried out by Moyes & Co. A "competent person" means someone qualified as such by the Joint Ore Reserves Committee. Magnolia also announced that further growth is anticipated as the company has 18 wells under development and 35 waiting to begin drilling for oil.
The company recently announced that, following the acquisition of four new wells in Mississippi and Oklahoma, it expects to exceed its year-end target of interest in 175 wells.
"We expect net production to continue to grow strongly. Increasingly new drilling activity is being funded using internally generated revenues and, as a result we are moving closer towards achieving self-funding status," Chief Operating Officer Rita Whittington said in a statement.
Magnolia shares were down 0.05 pence, or 2.2% to 2.42 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright 2013 Alliance News Limited. All Rights Reserved.