24th Oct 2012 07:00
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
24 October 2012
Magnolia Petroleum Plc (`Magnolia' or `the Company')
Rig contract signed for drilling first operated wellbefore year end
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce on 22 October it secured a rig to drill its first well as operator in Oklahoma into the Mississippi Lime formation. Drilling is expected to commence before the year end at a cost of approximately $729,148.00.
In accordance with standard industry practice, the Company has completed a Surface Use Agreement with the relevant surface owner and the site is currently being prepared for drilling. It is anticipated that the spud date for the well will be between 10 November 2012 and the year end.
Magnolia COO, Rita Whittington said, "We are delighted to be on course to drill our first well as operator in Oklahoma before the year end. Along with the progress we continue to make in significantly increasing the number of wells in which we are participating in with established operators in proven oil rich formations, this is an exciting period in Magnolia's development as we look to build a significant oil and gas company."
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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 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 10 Elected to participate / waiting to 14spud TOTAL 108Notes
\* This table 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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