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2 Oct 2012 14:53
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
2 October 2012
Magnolia Petroleum Plc (`Magnolia' or `the Company')
Participating in Four Additional Wells in Proven US Onshore Oil Plays in Oklahoma
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce its participation in four further wells in proven onshore oil plays in Oklahoma. Magnolia currently has interests in 84 producing properties, a further 10 currently being drilled/ completed and, following today's announcement, an additional 14 waiting to be spud.
Participating inthefollowing fourwells:
* Partagas 1-1H, horizontal well targeting the Mississippi Lime Formation, (Magnolia working/ net revenue interest 4.6875%/ 3.75976%) operated by Cisco Energy. Total drill costs are estimated at US$3,786,200 with the Company's share US$177,478 * Sympson 1-6H, horizontal well, targeting the Woodford Formation (Magnolia working/ net revenue interest 0.9482%/ 0.71115%) operated by Continental Resources (`Continental'). Total drill costs are estimated at US$9,491,000 with the Company's share US$89,994 * Mack 10-27-17 1H, horizontal well targeting the Mississippi Lime Formation, (Magnolia working/ net revenue interest 0.625%/ 0.5%) operated by Chesapeake Energy. Total drill costs are estimated at US$3,988,650 with the Company's share US$24,929 * Kelly 1-2H, horizontal well targeting the Woodford Formation, (Magnolia working/ net revenue interest 0.1736%/ 0.1302%) operated by Eagle Rock Energy. Total drill costs are estimated at US$3,456,863 with the Company's share US$6,001
From time to time, the Company elects to participate in wells with relatively small working/ net revenue interests, such as the Kelly 1-2H well above. This allows Magnolia to gain access to critical well information which is then used to further enhance its understanding of the relevant formation.
Magnolia COO, Rita Whittington said, "As today's news shows, we continue to receive multiple proposals to participate in wells across our leases covering over 5,500 net mineral acres in proven US onshore oil plays, such as the Bakken / Three Forks Sanish, North Dakota and the Mississippi Lime and Woodford/ Hunton, Oklahoma. The Sympson well is our first with Continental, yet another leading operator with whom we have a commercial relationship. I look forward to providing further updates in due course as we work to build our net production and reserves."
** ENDS **
For further information on Magnolia Petroleum Plc visit www.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 Northland Capital Partners +44 (0) 20 7796 8800Wicks 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 NotesMagnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas explorationand production company. Its portfolio includes interests in 84 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 WellsCategory Number of wells Producing 84 Being Drilled / Completed 10 Elected to participate / waiting to 14spud TOTAL 108Notes
\* This table excludes four out of six wells acquired as part of the acquisition of 800 gross acres with a 100% working interest in Osage County, Oklahoma, as announced on 10 February 2012. These four wells are currently `shut in' and will require a workover programme at some point in the future to bring back into production.
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