RE: Rita Whittington said13 Feb 2018 09:02
Magnolia CEO, Rita Whittington said, �Today�s new units are the tip of the iceberg in terms of the number of new leases and wells that we expect to acquire via the investment of the first US$500,000 tranche of WED funds.� In all our US$500,000 pilot programme resulted in a total of 27 new drilling opportunities, most of which were in the prolific and highly active SCOOP and STACK plays in Oklahoma. In addition, the pilot programme demonstrated the potential to earn impressive returns at the portfolio level, despite holding relatively small interests in individual wells.� Based on the fees and equity in new wells and leases, the successful test generated US$200,000 in value for Magnolia.�
�Extrapolate the results of the pilot programme and the potential for our ground-breaking US$18.5 million agreement with WED to move the needle and GENERATE SIGNIFICANT SHAREHOLDER VALUE FOR OUR SHAREHOLDERS is clear.� As new leases in qualifying counties are acquired, new wells drilled, and additional funds transferred under the WED Agreement, the next few months are expected to see a step-up in activity, as we focus on scaling up Magnolia�s net reserves across our portfolio of interests in proven US onshore formations. With this in mind, I look forward to providing further updates on our progress.�
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