Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
18 September 2014
Magnolia Petroleum Plc(`Magnolia' or `the Company')
Operations Update
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, is pleased to provide an operations update
across its portfolio of interests in proven US onshore formations including the
Bakken, North Dakota and Woodford and Mississippi Lime, Oklahoma. This update
is in line with the Company's strategy to rapidly build production through
drilling and prove up the reserves on its leases.
Commencement of production at the following well:
Well Name Targeted Operator Gross IPR Magnolia's Net IPR
Formation NRI%
Cummings 2H Mississippi Chesapeake 333 boepd 3.34 11 boepd
Lime, Energy
Oklahoma
The Company is participating in the following two wells at a net aggregate cost
of US$245,223:
Well Name Targeted Operator Magnolia's Net Cost to Status
Formation WI/NRI% Magnolia
Nighswonger Mississippi Sandridge 3.125/2.242 US$146,535 Waiting
Farms 2 Lime, Oklahoma Energy to spud
Edwards Mississippi Devon 1.5625/1.25 US$98,688 Waiting
Lime, Woodford, Energy on IP
Oklahoma rates
Rita Whittington, COO of Magnolia, said, "At 333 boepd, the initial production
rate of the Cummings 2H, an increased density well drilled on the same spacing
unit as the Cummings 31-28-12-1H 2H which itself recorded an IPR of 525 boepd,
demonstrates the potential of the Mississippi Lime formation, and the
relatively low risk attached to drilling offset wells in already producing
sections. As previously reported, we are seeing a pick-up in increased density
well proposals, such as today's Sandridge Energy operated Nighswonger Farm 2
well, as operators increasingly look to maximise the recovery of reserves on
individual sections. Thanks to our new and improved US$6m credit facility, our
fast growing production-generated revenues and the US$1m we recently received
for consulting services, Magnolia is in excellent shape to continue
participating in drilling activity alongside leading operators, and in the
process prove up the reserves on our leases."
The Company only provides details and updates for wells in which it has a
working interest of 1.5% or more. The Summary of Wells table at the end of each
release includes all wells in which Magnolia has an interest and is updated as
and when a change in status occurs for all wells.
** ENDS **
Glossary
`boe' means barrels of oil equivalent: a unit of energy based on the
approximate energy released by burning one barrel (42 US gallons or 158.9873
litres) of crude oil.
There are 42 gallons (approximately 159 litres) in one barrel of oil, which
will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700
kilowatt hours (kWh). The value is necessarily approximate as various grades of
oil have slightly different heating values. BOE is used by oil and gas
companies in their financial statements as a way of combining oil and natural
gas reserves and production into a single measure.
`boepd' means barrels of oil equivalent per day
`bopd' means barrels of oil per day, Abbreviation for barrels of oil per day, a
common unit of measurement for volume of crude oil. The volume of a barrel is
equivalent to 42 US gallons
`IPR' means initial production rates
`NRI' means net revenue interest
`WI' means working interest
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
Jo Turner / James Caithie Cairn Financial Advisers LLP +44 20 7148 7900
John Howes / Alice Lane Northland Capital Partners +44 20 7382 1100
Limited
Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177
Frank Buhagiar St Brides Media and Finance Ltd +44 20 7236 1177
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration
and production company. Its portfolio includes interests in 161 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.
Summary of Wells
Category Number of wells
Producing 161
Waiting on first sales / IP rates 8
Being drilled / completed 6
Elected to participate / waiting to spud 53
TOTAL 228