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17 May 2012 07:00
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
17 May 2012
Magnolia Petroleum Plc (`Magnolia' or `the Company') Participating in Three Additional Wells in Proven US Onshore Oil Plays& Mississippi Lime Formation Well Updates
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce its participation in three further wells in proven onshore oil plays in Oklahoma, as part of its expansion strategy to rapidly build production. Magnolia currently has interests in 74 producing properties. A positive update on four wells targeting the Mississippi Lime Formation, Oklahoma, is also provided.
Participating in following three wells:
* Joan 2-21,Grant County, targeting The Mississippi Lime Formation,(Magnolia 3.75% working interest) operated by Tessera Energy. The total cost of the well has been estimated at US$677,700 with the Company's share estimated at US$25,414. * Bollinger 1-27HHorizontal Well,CanadianCounty, targeting theWoodford / Hunton Formation, Oklahoma (Magnolia 1.0% working interest) operated by Cimarex. Total drill costs are estimated at US$5.9m with the Company's share estimated at US$59,000. * Sherri#1 Well, Viola / Simpson Formation, Oklahoma (Magnolia 1.4297% working interest) operated by Steve Nail who has proposed the re-entry of the Sherri#1 well targeting the Viola and Simpson zones. The total estimated cost for the proposed work is US$218,250 with the Company's share estimated at US$3,120.
Updateson fourwells targeting the Mississippi Lime
* Thomason 10-27-12 1H, (Magnolia 12.5% working interest) has been completed, initial production rates are awaited. * Brady 17-27-12 1H, (Magnolia 0.34375% working interest) has been completed, initial production rates are awaited * Lois Rust 7-27-12 1H (Magnolia 2.3% working interest) has been drilled and is waiting to be fracture stimulated * Redfork 1-25H (Magnolia 1.96% working interest) is waiting on spud.
Magnolia COO, Rita Whittington said, "Magnolia's further involvement in the proven oil plays of the Mississippi Lime and Woodford Formations in Oklahoma highlights the gathering momentum behind our overall objective: to significantly grow production and revenues. Earlier this week, we reported excellent initial production rates in wells targeting the Bakken / Three Forks Sanish Formations, North Dakota, bringing the total number of producing properties in which we have an interest in to 74. Today's news, along with upcoming results of wells that have been completed, including the Thomason well in which we have a 12.5% working interest, shows we remain on track to materially add to this number, and in the process grow Magnolia's production and revenues further."
** 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 Notes
Magnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas exploration and production company. Its portfolio includes interests in 74 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich Mississippi Lime and the substantial and proven Woodford and Hunton formations in Oklahoma.
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