24th Jan 2013 13:27
MAGNOLIA PETROLEUM PLC - Operational UpdateMAGNOLIA PETROLEUM PLC - Operational Update
PR Newswire
London, January 24
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
24 January 2013
Magnolia Petroleum Plc (`Magnolia' or `the Company') Operational UpdateMagnolia Petroleum Plc, the AIM quoted US onshore oil and gas exploration andproduction company, is pleased to report an update on the Company's commercialactivities in proven US onshore formations including the Bakken/Three ForksSanish, North Dakota, and the Mississippi Lime and Woodford/Hunton formationsin Oklahoma.
Participation in new wells
The Company is pleased to announce that it is participating in a further twowells, each with an estimated total cost of US$8,562,000 of which Magnolia'sshare is US$464,745 ($929,490 in aggregate).
Well Name Targeted Formation Operator Magnolia's WI/NRI Gustafson 31-30H Bakken, North Marathon Oil 5.428% / Dakota 4.071% Helgeson 41-30H Bakken, North Marathon Oil 5.428% / Dakota 4.071% Initial Production Rates * Commencement of production at the Cisco operated Montecristo 6-1H horizontal well in the Mississippi Lime formation, in which Magnolia has a 6.1879% working interest (`WI') and 5.3486% net revenue interest (`NRI') * Gross initial production rate at 50 boepd (2.6743 boepd net) * Expected payout (recovery of costs) in 40 months on costs of US$234,286 * Commencement of production at the Longfellow Energy operated Beebe 24-W1H horizontal well in the Woodford formation, in which Magnolia has a 0.3125% WI and 0.242188% NRI * + Gross initial production rate at 73 boepd (0.1768 boepd net) + Expected payout (recovery of costs) in 38 months on costs of US$14,265Existing Well Updates
The Company has also been informed by the relevant operators of a change instatus in the following wells:
Well Formation Status NRI % Operator Bessie Todd Estate Cotton Completed 0.17306 Anadarko GU 31H Valley Peck 1-5H Mississippi Drilling 0.502 Range ResourcesMagnolia COO, Rita Whittington said, "Our participation alongside Marathon inGustafson and Helgeson is in line with our strategy to grow our production andreserves by increasing both the number of wells in which we have an interest,as well as the average size of those interests.
"Through drilling we are systematically proving up the large number of leasesin producing hydrocarbon formations which we have acquired over the last twelvemonths, increasing Magnolia's proven reserves and thereby creating significantvalue for shareholders."
** ENDS ** Glossary`bopd' means barrels of oil per day
`boe' means barrels of oil equivalent: a unit of energy based on theapproximate energy released by burning one barrel (42 US gallons or 158.9873litres) of crude oil.
There are 42 gallons (approximately 159 liters) in one barrel of oil, whichwill contain approximately 5.8 million British Thermal Units (MBtus) or 1,700kilowatt hours (kWh). The value is necessarily approximate as various grades ofoil have slightly different heating values. BOE is used by oil and gascompanies in their financial statements as a way of combining oil and naturalgas reserves and production into a single measure.
`boepd' means barrels of oil equivalent per day
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 90 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 90 Being Drilled / Completed 15 Elected to participate / waiting to 17spud TOTAL 122NotesThis 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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