Magnolia Petroleum to Ramp Production at US Plays
Magnolia Petroleum Plc announced its participation in three further wells in proven onshore oil plays in Oklahoma, as part of its expansion strategy to rapidly build production. Magnolia currently has interests in 74 producing properties. A positive update on four wells targeting the Mississippi Lime Formation, Oklahoma, is also provided.
Participating in following three wells:
- Joan 2-21,Grant County, targeting The Mississippi Lime Formation,(Magnolia 3.75 percent working interest) operated by Tessera Energy. The total cost of the well has been estimated at $677,700 with the Company's share estimated at $25,414.
- Bollinger 1-27HHorizontal Well,CanadianCounty, targeting theWoodford / Hunton Formation, Oklahoma (Magnolia 1.0 percent working interest) operated by Cimarex. Total drill costs are estimated at $5.9M with the Company's share estimated at $59,000.
- Sherri#1 Well, Viola / Simpson Formation, Oklahoma (Magnolia 1.4297 percent working interest) operated by Steve Nail who has proposed the re-entry of the Sherri#1 well targeting the Viola and Simpson zones. The total estimated cost for the proposed work is $218,250 with the Company's share estimated at $3,120.
Updates on four wells targeting the Mississippi Lime
- Thomason 10-27-12 1H, (Magnolia 12.5 percent working interest) has been completed, initial production rates are awaited.
- Brady 17-27-12 1H, (Magnolia 0.34375 percent working interest) has been completed, initial production rates are awaited
- Lois Rust 7-27-12 1H (Magnolia 2.3 percent working interest) has been drilled and is waiting to be fracture stimulated
- Redfork 1-25H (Magnolia 1.96 percent working interest) is waiting on spud.
Magnolia COO, Rita Whittington said, "Magnolia's further involvement in the proven oil plays of the Mississippi Lime and Woodford Formations in Oklahoma highlights the gathering momentum behind our overall objective: to significantly grow production and revenues. Earlier this week, we reported excellent initial production rates in wells targeting the Bakken / Three Forks Sanish Formations, North Dakota, bringing the total number of producing properties in which we have an interest in to 74. Today's news, along with upcoming results of wells that have been completed, including the Thomason well in which we have a 12.5 percent working interest, shows we remain on track to materially add to this number, and in the process grow Magnolia's production and revenues further."