Magnolia to Complete ND Wells by Year-End
Magnolia announced a positive update on its operations in North Dakota where the Company has a portfolio of interests in the potentially game-changing and highly productive Bakken/Three Forks Sanish hydrocarbon formations.
- Successful drilling of the two Skunk Creek Wells located in the Bakken/
- Three Forks Sanish formations, Dunn County, North Dakota
- Magnolia participated with a 0.59 percent interest in the drilling of each well with Kodiak Exploration
- Highly encouraging initial shows and subsequent application made to drill an additional three Bakken wells and three Three Forks Sanish wells within the same 1,280 acre spacing unit
- On completion of these further six wells, a substantial increase in overall production attributable to Magnolia is expected
- Completion of both wells expected to commence by end of 2011 - between 23 and 24 multi stage frac techniques are to be performed on the two wells
- Stocke 1-4-9H well, located in McKenzie County, North Dakota, now reached total depth, awaiting completion
- Magnolia participating with Hunt Oil Company with a 3.17 percent working interest
Magnolia Petroleum COO, Rita Whittington said, "We are delighted to be able to provide our shareholders with such a positive update on our operations so close to our listing on AIM last month. The successful drilling of the two wells at Skunk Creek and reaching total depth in the Stocke well provides us with huge encouragement as we continue to participate in drilling in the highly productive Bakken/Three Forks Sanish formations. We are particularly excited about the Skunk Creek Three Forks Sanish well, as Moyes & Co. our Competent Person singled out this well as a trigger for a significant shift in Magnolia's reserve categories once the well has been successfully drilled and is producing.
"Modern technology such as multi-stage frac techniques used in the completion of horizontal wells has increased production tremendously in non-conventional oil and gas plays. Magnolia's participation in the Drone well, completed as a 30 stage frac, yielded an initial production of 1,199 barrels of oil per day, and nearly trebled Magnolia's net production interests to approximately 20 barrels per day. We are extremely pleased with the Company's participation in successful drilling programs to date and our highly experienced Board anticipates the Stocke and Skunk Creek wells will prove to be highly productive and will add to our outstanding success rate to date. With this in mind, I very much look forward to updating shareholders on our progress."