LONDON (Alliance News) - Magnolia Petroleum PLC Tuesday said its sales tripled in its first half as it continued to add new producing assets to its portfolio, increasing production 75%.
The oil and gas exploration and production company with operations in the US said it made a pretax profit of USD644,574 for the six months ended June 30 compared to a pretax loss of USD537,535 the previous year.
The company said sales increased by 223% to USD910,721 from USD282,208, as daily production rose by 75% to 214 barrels of oil equivalent per day from 122.5 barrels.
The company had interests in 128 wells as of June 30 and expects to participate in 40 new wells in the near future. It said it made a total investment of USD2.8 million in drilling during the period.
The company's latest reserves report, show that the company's probable reserves stood at USD47 million as at 1 August 2013, a 21-fold increase since Magnolia's AIM Admission in November 2011.
"Not only does this provide solid asset backing to our current market capitalisation but also demonstrates the potential of our low-risk high-return business model to generate significant value for shareholders," Chief Executive Steven Snead said in a statement.
Magnolia Petroleum shares were up 0.02 pence at 2.47p Tuesday morning.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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