26th Jan 2012 07:00
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
26 January 2012
Magnolia Petroleum Plc (`Magnolia' or `the Company') Participation in Additional Well in the Prolific Bakken Formation, North Dakota
Magnolia Petroleum Plc, the AIM quoted US focussed oil and gas exploration and production company, has received a proposal from, and has elected to participate with, the operator, Slawson Exploration Co Inc., in the drilling of the Drone 2-34-27H well (`Drone #2'), located in Sections 27 and 34-145N-93W, Dunn Co., North Dakota. These same sections of the Middle Bakken were successfully drilled by the Drone #1 well as announced on 4 November 2011 and resulted in an increase in production attributable to Magnolia across all its interests from 7 to approximately 20 barrels of oil equivalent per day.
As with Drone #1, Magnolia has a 1.3344% working interest in Drone #2. The total cost of Drone #2 is estimated at US$9,109,075, at a cost to Magnolia of approximately US$121,551. The estimated spud date for the well is 15 February 2012.
Magnolia COO, Rita Whittington said, "With the results of Drone #1 still fresh in our minds we are hopeful that Drone #2 will replicate this success as we focus on materially increasing our net production. We are now participating in 6 wells in the Bakken Formation, where production continues to increase, highlighting its prospectivity; over half a million barrels of oil per day are currently produced, as compared to 130,000 barrels of oil per day in 2003. Indeed, a US Geological Survey's report estimated that the Bakken held between 3 - 4.3 billion barrels of undiscovered recoverable oil, which gives us much confidence in the future of this project and our participation in other wells in the Bakken.
"Outside of the Bakken, we remain highly active in the Three Forks Sanish Formation in North Dakota, the Woodford/Hunton reservoirs in Oklahoma and the oil rich Mississippi also located in Oklahoma and I look forward to providing further updates on all our interests in due course."
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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 64 producing and non-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.
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