9th May 2013 07:00
MAGNOLIA PETROLEUM PLC - Operations UpdateMAGNOLIA PETROLEUM PLC - Operations Update
PR Newswire
London, May 8
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
9 May 2013 Magnolia Petroleum Plc(`Magnolia' or `the Company') Operations UpdateMagnolia Petroleum Plc, the AIM quoted US onshore focused oil and gasexploration and production company, is pleased to report an update on itsactivities in proven US onshore formations including the Mississippi Lime andWoodford in Oklahoma.
Commencement of Production
The Company has been informed by the relevant operator that production hascommenced at the following well, with the IPR as set out below:
Well Name Formation Operator Gross IPR Magnolia's Net IPR NRI Forrest Woodford, Continental 1,272 boepd 0.586% 7.5 boepd1-8H Oklahoma ResourcesOn-going Leasing Activity
The Company has acquired an additional 152.617 acres in the Mississippi Limeformation, Oklahoma, bringing Magnolia's total acreage in the play to c. 4,659net mineral acres.
Murl#1 well
Magnolia's working/net revenue interest in the Basis operated Murl#1 well,targeting the historic Wilcox formation, has increased to 2.812%/2.071%respectively from 2.437%/1.736% as previously reported on 28 March 2013. Murl#1is an additional direct offset to the Henry 2-29, Bowen 2-29 and Bowen 3-29wells that are producing from the historic Wilcox formation in Oklahoma.Following the success of the Henry and Bowen wells, the Murl well is beingdrilled to optimise the recovery of all the reserves.
Rita Whittington, COO of Magnolia, said, "The excellent initial productionrates for the Forrest well highlight the positive impact advanced technologiesand techniques including horizontal drilling and fracture stimulation arehaving on recovery rates for wells drilled in historic US formations such asthe Woodford in Oklahoma.
"We continue to see and evaluate opportunities to increase Magnolia's acreagein the prolific Mississippi Lime formation. In all, Magnolia now holds over13,500 acres in proven US onshore oil rich plays containing over 600 potentialdrilling locations. Our extensive experience and contacts also allow us toincrease our interests in wells such as the Murl#1, targeting the Wilcox,another productive reservoir. Increasing both our acreage in proven formationsand the average size of our interests in wells operated by established oil andgas companies are key components of our strategy to grow net production andreserves through drilling as we look to build a significant US onshore focussedoil and gas company."
Existing well updates
The Company has been informed by the relevant operators of a change in statusin the following wells in which it is participating:
Well Formation Status NRI % Operator Flinders 1-25H Mississippi Waiting on initial 1.848 Redfork Lime, Oklahoma production rates Nighswonger Farms Mississippi Waiting on initial 2.242 Slawson2815 1-13H Lime, Oklahoma production rates Exploration Wolf 1H-25 Mississippi Waiting on initial 1.250 Highmount Lime, Oklahoma production rates JoAnn 1H-18 Woodford, Waiting on 0.445 Newfield Oklahoma fracture Exploration stimulation Sympson 1-6H Woodford Drilled - setting 0.711 Continental pipe Resources Cordray-Ritter Mississippi Drilling 0.597 Chesapeake4-28-14 1H Lime, Oklahoma Energy ** ENDS **For further information on Magnolia Petroleum Plc visitwww.magnoliapetroleum.com or contact the following:
Steven Snead Magnolia Petroleum Plc +01 918 449 8750Rita 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 7796 8800Luke Cairns 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 explorationand production company. Its portfolio includes interests in 106 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 Wells Category Number of wells Producing 106 Being Drilled / Completed 17 Elected to participate / waiting to 16spud TOTAL 139This 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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