31st May 2012 08:58
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
31 May 2012 Magnolia Petroleum Plc (`Magnolia' or `the Company') Initial Production from Thomason Well, Mississippi Lime Formation, Oklahoma
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to report initial production rates of 124 bopd and 2,032 mcfpd for the Thomason 10-27-12 1H well (`Thomason') in the Mississippi Lime Formation in Oklahoma.
The output is mainly liquids rich gas, the first such well for Magnolia, with an oil equivalent production rate of 441 boepd, in line with management expectations.
Magnolia holds a 12.5% working interest and a 9.375% net revenue interest in the Thomason well so the net initial production attributable to Magnolia arising from the Thomason is approximately 41 boepd.
Magnolia now has interests in 75 producing properties with a further two either in drilling or waiting completion and seven waiting to spud. The Company remains on course to increase the number of wells in which it has an interest in to 100 by the end of the year. Importantly, its interest in the Thomason well is its largest to date and is in line with Magnolia's strategy to significantly increase net revenues and production by participating in, as well as operating, wells with larger working interests in proven oil formations such as the prolific Bakken / Three Forks Sanish in North Dakota and Mississippi Lime in Oklahoma.
Magnolia COO, Rita Whittington said, "We are delighted with the initial production rates of the Thomason well, which are in line with Company expectations. Combined with the recently reported Eckelberg and Quill wells, we are on course to report another material increase in our quarterly revenues.
"We look forward to reporting on our overall Company production rates and producing and non-producing properties in due course."
** ENDS **
Glossary
`bopd' means barrels of oil per day
`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 liters) 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
`Mbbl' means thousand barrels
`Mcf' means thousand cubic feet
`Mmcf' means million cubic feet
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 75 producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the substantial and proven Woodford and Hunton formations and the oil rich Mississippi formation, in Oklahoma
Related Shares:
Magnolia Petroleum