LONDON (Alliance News) - Magnolia Petroleum PLC Friday said it has received a large number of operator proposals to drill increased density or infill wells across its US onshore leases.
The US-focused onshore oil and gas production company, which takes small stakes in multiple wells in highly prospective shale plays, said it received the proposals from operators such as Devon Energy Corp, Newfield Exploration Co, Chesapeake Energy Corp and Kodiak Exploration Ltd.
The sites for possible infill wells include the Bakken, North Dakota and Mississippi Lime plays.
Infill wells maximise the recovery of reserves on leases. Magnolia holds a large number of wells across these sites, and therefore expects strong growth in production and reserves in the years ahead.
The company said it has elected to participate in nine increased density wells on its leases since January 1 and there are currently 12 more possible density wells being filed by the relevant operators.
Magnolia noted that roughly 75% of its over 600 proven development locations in Oklahoma and North Dakota are increased density wells.
"We are confident 2014 will see us build upon the excellent momentum behind the company, specifically in terms of the excellent production and reserves growth seen to date, as we look to deliver on our objective and generate value for our shareholders," the company's Chief Operating Officer Rita Whittington said in a statement.
Magnolia shares were up 2.3% to 2.20 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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