16th Jan 2017 07:00
Magnolia Petroleum Plc - Q4 2016 Operations UpdateMagnolia Petroleum Plc - Q4 2016 Operations Update
PR Newswire
London, January 13
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
16 January 2017
Magnolia Petroleum Plc (‘Magnolia’ or ‘the Company’)
Q4 2016 Operations Update
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce a quarterly update for Q4 2016 (‘the Quarter’) on its operations across proven and producing US onshore hydrocarbon formations, including the Bakken/Three Forks Sanish in North Dakota, and the Woodford, Mississippi Lime and the Hunton in Oklahoma.
Q4 Highlights to 31 December 2016
Two new wells commenced production during the Quarter 153 producing wells in the Company’s portfolio as at end of Q4 2016 Elected to participate in five new wells during the Quarter Nine wells currently at various stages of development Raised £225,000 to fund drilling commitments on its US onshore leases (see announcement of 27 October 2016 for further details)Outlook
New wells due to come into production in Q1 2017 Participation with leading operators in new wells and infill drilling which are commercial at lower oil prices Updated Reserves Report as at 1 January 2017 due in the near-term On-going lease acquisition and management activity in line with strategy to grow and diversify portfolioMagnolia COO, Rita Whittington said, “Thanks to two new wells coming on stream during the Quarter and following the divestment of 67 producing wells with little or no economic value in 2016, Magnolia ended the year with a portfolio of 153 producing wells located in proven US onshore formations.
“With WTI consistently trading above the US$50 level on the back of the recent OPEC meeting and our cost base almost a third lower than it was a year ago, Magnolia is well placed to step up our level of drilling activity once a recovery in sentiment has become firmly entrenched. With this in mind, we are encouraged by the noticeable pick up we are seeing in planned drilling by operators in our areas of focus; while on a wider level the near 10% month on month increase in the US rig count to 634 in December 2016 bodes well. Our strategy and objective remains the same: to drill alongside established operators to prove up the reserves on our leases, and in the process generate value for our shareholders.”
Well Developments
The full list of well developments occurring in the quarter is set out below.
| Well | Formation | Status | NRI % | Operator |
| Sympson 2-7-6XH | Woodford, Oklahoma | Drilled – waiting on completion | 0.40 | Continental Resources |
| Sympson 4-6-7XH | Woodford, Oklahoma | Drilled – waiting on completion | 0.40 | Continental Resources |
| Chalfant 2-7H | Woodford, Oklahoma | Drilled – waiting on completion | 0.36 | Continental Resources |
| Sympson 10-6H | Woodford, Oklahoma | Drilled – waiting on completion | 0.44 | Continental Resources |
| Sympson 8-7-6H | Woodford, Oklahoma | Waiting on spud | 0.40 | Continental Resources |
| Sympson 3-7-6XH | Woodford, Oklahoma | Waiting on spud | 0.40 | Continental Resources |
| Sympson 9-7-6XH | Woodford, Oklahoma | Drilling | 0.40 | Continental Resources |
| Sympson 5-6-7XH | Woodford, Oklahoma | Drilled - waiting on completion | 0.40 | Continental Resources |
| Sympson 7-6-7XH | Woodford, Oklahoma | Waiting on spud | 0.40 | Continental Resources |
| Sympson 6-6-7XH | Woodford, Oklahoma | Waiting on spud | 0.40 | Continental Resources |
| Michele Abel H1-2XH | Springer, Oklahoma | Producing | 0.13 | Marathon |
The information contained within this announcement constitutes inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.
* * ENDS * *
For further information on Magnolia Petroleum Plc visit www.magnoliapetroleum.com or contact the following:
| Steven Snead | Magnolia Petroleum Plc | +01918449 8750 |
| Rita Whittington | Magnolia Petroleum Plc | +01918449 8750 |
| Jo Turner / James Caithie | Cairn Financial Advisers LLP | +44207213 0880 |
| Colin Rowbury | Cornhill Capital Limited | +44207710 9610 |
| Lottie Brocklehurst | St Brides Partners Ltd | +44207236 1177 |
| Frank Buhagiar | St Brides Partners Ltd | +44207236 1177 |
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration and production company. Its portfolio includes interests in 153 producing and non-producing assets, primarily located in the highly productive Bakken/Three Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich Mississippi Lime and the substantial and proven Woodford and Hunton formations in Oklahoma.
Summary of Wells
| Category | Number of wells |
| Producing | 153 |
| Being drilled / completed | 9 |
| Elected to participate / waiting to spud | 27 |
| TOTAL | 189 |
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