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21 May 2013 07:00
MAGNOLIA PETROLEUM PLC - Participating in 11 Additional US Onshore WellsMAGNOLIA PETROLEUM PLC - Participating in 11 Additional US Onshore Wells
PR Newswire
London, May 20
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
21 May 2013
Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations Update Including Participation in 11 New Wells in US Onshore FormationsMagnolia Petroleum plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to report an update on theCompany's activities in proven US onshore formations such as the Bakken/ThreeForks Sanish, North Dakota, and the Mississippi Lime and Woodford/Huntonformations in Oklahoma.
Participation in new wells
The Company is pleased to announce that it is participating in the followingeleven wells for an aggregate net cost of US$1,398,694:
Well Name Targeted Formation Operator Magnolia's Net Cost to
WI/NRI MagnoliaBlaser 1-10H Mississippi Lime, Cummings 12.5%/ US$406,188
Oklahoma 9.375%Jake 2-11-3TFH Three Forks Sanish, Statoil 1.953%/ US$209,568
North Dakota 1.465% Jake 2-11-4H Bakken, North Statoil 1.953%/ US$209,568 Dakota 1.465%Jake 2-11-5TFH Three Forks Sanish, Statoil 1.953%/ US$209,568
North Dakota 1.465% Jake 2-11-6H Bakken, North Statoil 1.953%/ US$209,568 Dakota 1.465%Voise 1-10H Mississippi Lime, Devon Energy 1.667%/ US$58,134
Oklahoma 1.25%Giles 1-6H Mississippi Lime, Red Fork 1.25%/ US$42,579
Oklahoma 0.937%Paul 1-27H Mississippi Lime, Orion 0.391%/ US$16,766
Oklahoma 0.292%Rabke 1-24H36 Woodford, Oklahoma XTO 0.322%/ US$18,565
0.247%Jo Lynn 18-1WH Woodford, Oklahoma Devon Energy 0.435%/ US$14,416
0.348% TBN 1-32H Mississippi Lime, Red Fork 0.111%/ US$3,774 Oklahoma 0.088% Commencement of ProductionThe Company has been informed by the relevant operator that production hascommenced at the following wells, with the IPRs as set out below:
Well Name Formation Operator Gross IPR Magnolia's Net IPR
NRIWolf 1H-25 Mississippi Highmount 195 boepd 1.25% 2.4 boepd
Lime, OklahomaNighswonger Mississippi Slawson 107 boepd 2.242% 2.4 boepdFarms 2815 Lime, Exploration
1-13H OklahomaMcClure 36-2H Mississippi Highmount 90 boepd 0.055% 0.05 boepd
Lime, OklahomaRita Whittington, COO of Magnolia, said, "The speed with which we have startedto deploy the recently raised funds demonstrates the high level of activity inUS onshore liquids rich plays, the large number of opportunities we continue tosee and, more specifically, the considerable potential of the 13,500 plus netmineral acres we hold. Both the above average interest in the Blaser well,along with an aggregate net investment of almost US$1.4million into new wells,are in line with our strategy to rapidly grow net production and reservesthrough drilling, as we look to generate further value for shareholders. Thisis a highly exciting time for Magnolia and I look forward to providing furtherupdates on our progress in due course."
Interest in producing well
As part of Magnolia's on-going lease acquisition activity, the Company hasacquired a 0.328%/0.246% working/net revenue interest in the Betty 22-24-10 1H,a horizontal well operated by Chesapeake Energy. The well has been producingfrom the Mississippi Lime Formation in Oklahoma since October 2012 with areported initial production rate of 128 boepd.
** 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 Jo Turner / James Cairn Financial Advisers LLP +44 20 7148 7900Caithie John Howes / Alice Northland Capital Partners +44 20 7796 8800Lane / Luke Cairns Limited Lottie Brocklehurst St Brides Media and Finance +44 20 7236 1177 Ltd Frank Buhagiar St Brides Media and Finance +44 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 110 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 110 Being Drilled / Completed 14 Elected to participate / waiting to 27spud TOTAL 151This table 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.
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