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28 Mar 2013 07:00
MAGNOLIA PETROLEUM PLC - Operations UpdateMAGNOLIA PETROLEUM PLC - Operations Update
PR Newswire
London, March 27
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
28 March 2013
Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations UpdateMagnolia Petroleum plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to report an update on itsactivities in proven US onshore formations including the Bakken/Three ForksSanish, North Dakota and the Mississippi Lime in Oklahoma.
Participation in new wells
The Company is pleased to announce that it is participating in the followingthree wells: Well Name Targeted Formation Operator Magnolia's Net Cost to WI/NRI Magnolia Murl#1* Wilcox, Oklahoma Basis 2.4373% / US$13,562 1.736006% Big Rig 1-35 Wilcox, Oklahoma Territory 1.64063% / US$13,217 Resources 1.2304725% Jones 1-24H Woodford, Oklahoma Gillham Oil 0.13887% / US$1,876 Co. 0.1041525%\* The Murl#1 well is an additional direct offset to the Henry 2-29, Bowen 2-29and Bowen 3-29 wells that are producing from the historic Wilcox formation inOklahoma. Following the success of the Henry and Bowen wells, the Murl well isbeing drilled to optimise the recovery of all the reserves.
Existing Well Updates
The Company has been informed by the relevant operator that production hascommenced at the following well, with the IPR as set out below:
Well Name Formation Operator Gross IPR Magnolia's NRI Net IPR Campbell Woodford, Newfield 614.79 boepd 0.026025% 0.16boepd1-H OklahomaThe Company has been informed by the relevant operators of a change in statusin the following wells in which it is participating:
Well Formation Status NRI % Operator Finders 1-25H Mississippi Drilling 1.848256 Redfork JoAnn 1H-18 Woodford, Drilling 0.44485 Newfield Oklahoma ExplorationMagnolia's working/net revenue interest in the Devon Energy operated Miss Frank1-6H well, targeting the Mississippi Lime, has increased to 1.1117%/0.88936%respectively from 0.68594%/0.55732625% as previously reported on 15 January2013.
Rita Whittington, COO of Magnolia, said, "The initial production rates of theCampbell well have exceeded our expectations, which bodes well for futuredrilling activity within the Campbell unit and surrounding acreage whereMagnolia has varying interests. Importantly, as the Campbell well is nowproducing, the reserves within the spacing unit and adjoining areas will now beclassified as `proven'. While our interest in the Campbell well is small, ourparticipation has given us an insight into the potential of additional wells,and provides us with vital geological information that will further ourknowledge of the Woodford, a formation where we hold 702 net mineral acres,conferring the right to drill in 87 sections.
"The wells included in today's release are targeting three separate formations,an indication of the multiple payzones that exist across the 5,000 plus netmineral acres we hold in Oklahoma. Combined with the numerous proposals we arereceiving to add to the 126 wells at various stages of development in which wehave an interest, we remain confident that we will continue to grow Magnolia'snet production and reserves, and in the process, generate significant value forshareholders."
** ENDS **For further information on Magnolia Petroleum Plc visitwww.magnoliapetroleum.com or contact the following:
Steven Snead Magnolia Petroleum Plc +01 918 449 8750 Rita Whittington Magnolia Petroleum Plc +01 918 449 8750 Antony Legge/James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550 John Howes/John-Henry Wicks Northland Capital Partners +44 (0) 20 7796 8800 Limited Lottie Brocklehurst St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 (0) 20 7236 1177 Ltd Notes Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas explorationand production company. Its portfolio includes interests in 96 producing andnon-producing assets, primarily located in the highly productive Bakken/ThreeForks Sanish hydrocarbon formations in North Dakota as well as the oil richMississippi Lime and the substantial and proven Woodford and Hunton formationsin Oklahoma. Summary of Wells Category Number of wells Producing 96 Being Drilled / Completed 15 Elected to participate / waiting to 15spud TOTAL 126This summary excludes four out of six wells acquired as part of the acquisitionof 800 gross acres with a 100% working interest in Osage County, Oklahoma, asannounced on 10 February 2012. These four wells are currently `shut in' andwill require a workover programme at some point in the future to bring backinto production.
Total US onshore net acreage 12,794.16 acres
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