Magnolia Petroleum Acquires Acreage in Oklahoma
Magnolia Petroleum Plc announced the acquisition of additional acreage in the proven and producing US onshore hydrocarbon formations, the Mississippi and Woodford in Oklahoma, as well as an update on wells in which the Company is participating including the Quill 2-10-3H, targeting the prolific Bakken Formation, North Dakota.
- 1,191 net mineral acres acquired, with an average 31% working interest, and 24.8% net revenue interest, in the proven Mississippi Formation, Oklahoma - includes opportunity to participate in six potential wells
- Additional 245 net mineral acres acquired in the Woodford and Mississippi oil plays, Oklahoma as part of ongoing leasing activity
- All the acquisitions have occurred since the last quarterly update and brings total acreage acquired this year to 16,515 total gross acres (3,000 net mineral acres) in the oil rich Mississippi play, Oklahoma with an average 18 percent working interest in over 70 units - considerably higher than historic levels
- Acreage acquired in the Mississippi Formation already has the following wells drilling, completing and/or about to spud:
- Lois Rust 7-27-12H-drilled and waiting on completion, 2.29% working interest, 1.72% net revenue interest
- Redfork 1-25H, elected to participate and waiting on spud, 1.96% working interest, 1.52% net revenue interest
- Thomason 10-27-12 1H, completed and waiting on initial production results, 12.5% working interest, 9.375% net revenue interest
- Brady 17-27-12 1H, currently drilling, 0.3437% working interest, 0.2749% net revenue interest
- Quill 2-10-3H targeting the prolific Bakken Formation, North Dakota, currently being completed
"So far this year, we have acquired 3,000 net mineral acres primarily in the proven Mississippi Formation, the reopening oil play in Oklahoma. We are delivering on our goal to acquire acreage with materially larger working interests than has historically been the case. This is a crucial step on the road to accelerating Magnolia's transformation into a significant US onshore oil and gas company, as participating in wells in which we hold material interests will result in substantially higher production and revenues attributable to the Company," said Magnolia COO Rita Whittington.