26th Oct 2012 17:43
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
26 October 2012
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 announce an update on its activities across its portfolio of interests in proven oil plays including the Bakken/ Three Forks Sanish, North Dakota and the Mississippi Lime and Woodford/ Hunton formations in Oklahoma. Magnolia currently has interests in 84 producing properties, and, following today's announcement a further 13 currently being drilled/ completed and an additional 15 waiting to be spud.
Participating in the following four wells:
ï‚· Forrest 1-8H, horizontal well targeting the WoodfordFormation,Oklahoma (Magnolia working interest (`WI')/ net revenue interest (`NRI') 0.7812%/ 0.5859%) operated by Continental Resources (`Continental'). Total drill costs are estimated at US$9,623,500 with the Company's share US$75,179
* Condit 1-5H, horizontal well, targeting the Woodford Formation, Oklahoma (Magnolia WI/ NRI 0.06545%/ 0.04981%) operated by Continental. Total drill costs are estimated at US$9,285,500 with the Company's share US$6,077 * Peck 1-5H, horizontal well targeting the Mississippi Lime Formation,Oklahoma(Magnolia WI/ NRI 0.66953%/ 0.502%) operated by Range Resources. Total drill costs are estimated at US$3,624,200 with the Company's share US$24,265
ï‚· Bessie Todd Estate GU 31H, horizontal well targeting the Cotton Valley Formation, Texas (Magnolia WI/ NRI 0.2123%/ 0.17306%) operated by Anadarko. This well is a direct offset to the Bessie Todd Estate GU #1 to optimise the recovery of all the reserves. Total drill costs are estimated at US$7,854,367 with the Company's share US$16,675
On-goingLeasing Activity
* 164.93 acres acquired in the Mississippi Lime formation - total acreage in
the formation now stands at 4,176.32 acres
Magnolia COO, Rita Whittington said, "In this month alone we have announced our participation in four new wells targeting the Woodford formation, evidence of the increasing level of activity in this proven play. The total number of wells in which we have an interest alongside established operators such as Continental Resources now stands at 112 (84 producing, 13 drilling, 15 waiting to spud). The accelerating level of activity in the liquids rich plays in which we are active, coupled with the more than 600 potential drilling locations on our growing acreage, provides Magnolia with a long pipeline of future opportunities and underpins our strategy to create significant value for shareholders through sustained growth in production and reserves."
ExistingWell Updates
The Company has also been informed by the relevant operators of a change in status for the following wells:
Well Formation Status NRI % Operator Beebe 24-W1H Mississippi Drilled - 0.242188 Longfellow waiting on Energy frac Joan 1-21 Mississippi Drilled - 2.8125 Tessara waiting on Energy frac Otis 2-27-12 1H Mississippi Drilled - 3.370244 Chesapeake waiting on frac Curtis Kerr 24-8H Bakken Completing 1.46677 Marathon Nicky Kerr 14-8 Bakken Completing 1.46677 Marathon Phenom 1-14H Mississippi Drilled - 1.72626 Territory waiting on Resources frac Kelly 1-2H Woodford Drilling 0.1302 Eagle Rock Energy Bowen 2-29 Wilcox Completed 1.736006 Basis
Increase in interestsof existing wells
Magnolia's WI/ NRI in the Bollinger 1-27H well, operated by Cimarex and currently producing from the Hunton formation, Oklahoma, have now increased to 0.709867% and 0.5324% respectively.
Magnolia's WI/ NRI in the Bowen 2-29 and 3-29 wells, operated by Basis and located in the Wilcox formation, Oklahoma, have changed to 2.314675% and 1.736006% respectively.
** 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 Wicks Northland Capital Partners +44 (0) 20 7796 8800
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 13 Elected to participate / waiting to 15spud TOTAL 112
This summary 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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Magnolia Petroleum