Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
11 December 2013
Magnolia Petroleum Plc(`Magnolia' or `the Company')
Excellent Initial Production at Four Statoil Operated Wells in North Dakota
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas
exploration and production company, is pleased to report initial production
rates for four Jake wells in the Bakken and Three Forks Sanish Formations,
North Dakota. Magnolia holds a 1.465% net revenue interest in each of these
Statoil operated wells which, combined, add 156 boepd to Magnolia's net
production. This update is in line with the Company's strategy to rapidly build
production through drilling and in the process prove up the reserves on its
leases.
Commencement of Production at four wells in North Dakota
Well Name Targeted Operator Gross IPR Magnolia's Net IPR
NRI%
Formation
Jake 2-11 Bakken, North Statoil 3,315 bopd 1.465 49 bopd
6H Dakota
Jake 2-11 Three Forks Statoil 2,430 bopd 1.465 36 bopd
5TFH Sanish, North
Dakota
Jake Bakken, North Statoil 2,543 boepd 1.465 37 boepd
2-11-4H Dakota
Jake Three Forks Statoil 2,300 boepd 1.465 34 boepd
2-11-3TFH Sanish, North
Dakota
Rita Whittington, COO of Magnolia, said, "As with the previously reported two
Jake wells, also operated by Statoil, all four initial production rates
reported today are among the best in our portfolio of 133 producing wells in
proven US onshore formations, such as the Bakken and Three Forks Sanish, North
Dakota. Our share of production from these four wells alone totals 156 boepd,
and as a result we expect our next CPR, due in Q1 2014, to report another major
increase in Magnolia's daily production which, as at 1 August 2013, stood at
214 boepd.
"As with all wells, production will naturally decline from these reported
levels before stabilising at lower rates. Such high initial production rates
however are hugely beneficial to our strategy, as it results in the swift
recovery of costs and allows revenues to be reinvested into new wells to prove
up the reserves on our leases covering over 13,500 net mineral acres. With a
further 47 wells under development including those in which Magnolia has larger
working interests, we expect the excellent growth seen to date in our proven
(P1) reserves, which as at 1 August 2013 was assigned a value of US$40.721m, to
continue."
** ENDS **
Glossary
`boe' means barrels of oil equivalent: a unit of energy based on the
approximate energy released by burning one barrel (42 US gallons or 158.9873
litres) of crude oil.
There are 42 gallons (approximately 159 litres) in one barrel of oil, which
will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700
kilowatt hours (kWh). The value is necessarily approximate as various grades of
oil have slightly different heating values. BOE is used by oil and gas
companies in their financial statements as a way of combining oil and natural
gas reserves and production into a single measure.
`boepd' means barrels of oil equivalent per day
`bopd' means barrels of oil per day, Abbreviation for barrels of oil per day, a
common unit of measurement for volume of crude oil. The volume of a barrel is
equivalent to 42 US gallons
`IPR' means initial production rates
`NRI' means net revenue interest
`WI' means working interest
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 133 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 133
Being Drilled / Completed 12
Elected to participate / waiting to 35
spud
TOTAL 180
