Magnolia Petroleum Increases Participation in Oklahoma Wells
Magnolia Petroleum Plc announced its participation in four further wells in proven onshore oil plays in Oklahoma. Magnolia currently has interests in 84 producing properties, a further 10 currently being drilled/ completed and, following today's announcement, an additional 14 waiting to be spud.
Participating in the following four wells:
- Partagas 1-1H, horizontal well targeting the Mississippi Lime Formation, (Magnolia working/ net revenue interest 4.6875%/ 3.75976%) operated by Cisco Energy. Total drill costs are estimated at $3,786,200 with the Company's share $177,478
- Sympson 1-6H, horizontal well, targeting the Woodford Formation (Magnolia working/ net revenue interest 0.9482%/ 0.71115%) operated by Continental Resources (Continental). Total drill costs are estimated at $9,491,000 with the Company's share $89,994
- Mack 10-27-17 1H, horizontal well targeting the Mississippi Lime Formation, (Magnolia working/ net revenue interest 0.625%/ 0.5%) operated by Chesapeake Energy. Total drill costs are estimated at $3,988,650 with the Company's share $24,929
- Kelly 1-2H, horizontal well targeting the Woodford Formation, (Magnolia working/ net revenue interest 0.1736%/ 0.1302%) operated by Eagle Rock Energy. Total drill costs are estimated at $3,456,863 with the Company's share $6,001
From time to time, the Company elects to participate in wells with relatively small working/ net revenue interests, such as the Kelly 1-2H well above. This allows Magnolia to gain access to critical well information which is then used to further enhance its understanding of the relevant formation.
Magnolia COO, Rita Whittington said, "As today's news shows, we continue to receive multiple proposals to participate in wells across our leases covering over 5,500 net mineral acres in proven U.S. onshore oil plays, such as the Bakken / Three Forks Sanish, North Dakota and the Mississippi Lime and Woodford/ Hunton, Oklahoma. The Sympson well is our first with Continental, yet another leading operator with whom we have a commercial relationship. I look forward to providing further updates in due course as we work to build our net production and reserves."