Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
28 June 2013
Magnolia Petroleum Plc(`Magnolia' or `the Company')
Excellent Initial Production at Gustafson Well in the Bakken, North Dakota
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, is pleased to report an update on its
activities in proven US onshore formations including an initial production rate
of 1,216 boepd for the Marathon Oil operated Gustafson 31-30H well in the
Bakken Formation, North Dakota in which Magnolia holds a 4.071% net revenue
interest.
Commencement of Production
The Company has been informed by the relevant operator that production has
commenced at the following four wells, with the Initial Production Rate (`IPR')
as set out below:
Well Name Targeted Operator Gross IPR Magnolia's Net IPR
NRI%
Formation
Gustafson Bakken, Marathon Oil 1,216 boepd 4.071 50 boepd
31-30H North Dakota
Condit Woodford, Continental 1,546 boepd 0.5 7.7 boepd
1-5H Oklahoma Resources
Voise Mississippi Devon Energy 105 boepd 1.25 1.3 boepd
1-10H Lime,
Oklahoma
Joan 1-21* Mississippi Tessara 12 bopd 2.812 0.3 bopd
Lime, Energy
Oklahoma
*Joan 1-21 is a vertical well
Rita Whittington, COO of Magnolia, said, "We are delighted with the initial
production rate for the Gustafson well which demonstrates the prolific nature
of the Bakken formation in North Dakota. Combined with a 4% NRI in the well,
net production attributable to Magnolia from Gustafson is currently 50 boepd.
As a result, this well alone represents a 40% increase on the 122.5 boepd
reported in the Competent Person's Report (`CPR') as at 31 December 2012. Since
then, in addition to Gustafson, a number of new wells have come on stream and
we therefore expect our next CPR to report a significant increase in production
as at 31 December 2013.
"With Gustafson's excellent results in mind, we are looking forward to
receiving the initial production rate for the Helgeson well, situated close to
Gustafson, in which we also hold a 4% NRI, as we look to continue to increase
net production and prove up reserves on the 13,500 plus net mineral acres we
hold in proven US onshore formations."
Existing well updates
The Company has been informed by the relevant operators of a change in status
in the following wells in which it is participating:
Well Targeted Status NRI % Operator
Formation
Sullins 1-6MH Mississippi Completed 3.718 Devon
Lime, Oklahoma Energy
JKL 1-08 H Mississippi Completed and 1.719 Devon
Lime, Oklahoma waiting on frac Energy
Murl#1 Wilcox, Oklahoma Expected to spud 3.047 Basis
within 10 days
** ENDS **
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
Jo Turner / James Caithie Cairn Financial Advisers LLP +44 20 7148 7900
John Howes / Alice Lane / Northland Capital Partners +44 20 7796 8800
Luke Cairns Limited
Lottie Brocklehurst St Brides Media and Finance Ltd +44 20 7236 1177
Frank Buhagiar St Brides Media and Finance Ltd +44 20 7236 1177
Notes
Magnolia Petroleum Plc is an AIM quoted, US focused, oil and gas exploration
and production company. Its portfolio includes interests in 117 producing and
non-producing assets, primarily located in the highly productive Bakken/Three
Forks Sanish hydrocarbon formations in North Dakota as well as the oil rich
Mississippi Lime and the substantial and proven Woodford and Hunton formations
in Oklahoma.
Summary of Wells
Category Number of wells
Producing 117
Being Drilled / Completed 11
Elected to participate / waiting to 30
spud
TOTAL 158
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.
