🕐11.04.13 - 09:27 Uhr

MAGNOLIA PETROLEUM: ACQUISITION OF ACREAGE IN MISSISSIPPI LIME RAISES PRODUCING
WELL COUNT TO 104 IN US ONSHORE PLAYS



Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas 11 April 2013 Magnolia Petroleum Plc (Magnolia or the Company) Acquisition of Leases in Mississippi Lime Formation, Oklahoma & Farm down of Existing Interests to North American Petroleum plc Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce that it has acquired a further 250 net mineral acres in the Mississippi Lime formation, Oklahoma (the Acquisition) which has existing production and multiple potential drilling locations from Fairmount Ridge Partners LP (Fairmount), a subsidiary of Fairmount Energy LLC.

The Acquisition is in line with the Companys strategy to significantly grow net production and reserves by acquiring and developing leases in proven US onshore formations.

The Company also announces it has agreed to sell an interest in leases it already owns to ISDX listed North American Petroleum plc (NAP) as part of its ongoing lease management activity. Highlights * 250 net mineral acres with various working interests acquired in Mississippi Lime formation, Oklahoma * Acreage provides exposure to 56 new sections/units with 168 potential drilling locations in the Mississippi Lime * Acquisition increases Magnolias working/net revenue interest (WI/NRI) in the Miss Frank 1-6H well to 4.648%/3.672% from 0.686%/0.557% * Acreage includes five producing wells and four new wells waiting to spud * Magnolia to farm down to North American Petroleum plc (NAP) a 2% leasehold interest in 13 of its currently held leases, representing 166.4 net acres o Magnolia to maintain up to 22.5% interest in these 13 sections o Farm-down frees up funds that can be used to further diversify portfolio Magnolia COO, Rita Whittington said, "This acquisition not only increases the number of producing wells in which we have an interest to 104, it significantly increases the amount of potential drilling locations across our leases in proven US onshore formations.

Selling down our interests in 13 existing sections where we have a large exposure monetises a portion of our acreage and releases funds for reinvestment into further acquisitions or drilling, as we look to build a diversified portfolio of leases, that can be systematically drilled to prove up reserves, increase production, and generate significant value for shareholders." Further information The 250 net mineral acres acquired from Fairmount includes five wells already producing from the Mississippi Lime formation, bringing the total number of producing wells in which the Company has an interest to 104.

The details of the five wells are provided in the table below.

The acquired acreage provides exposure to 56 new sections/units in Oklahoma where Magnolia has until now been under - represented.

It is the view of the Directors that up to three wells are required in each unit to maximise the recovery of reserves in the Mississippi Lime.

As a result, the Acquisition provides the Company with exposure to a potential 168 drilling locations. Producing Wells on the Acquired Acreage Well Name Formation Magnolias NRI Louis#7-1WX Mississippi Lime, Oklahoma 0.1999% Ripley 1H-28 Mississippi Lime, Oklahoma 0.1375% Wolf 1H-21 Mississippi Lime, Oklahoma 0.0899% McSwain 1H-12 Mississippi Lime, Oklahoma 0.5094% Grant 1H-10 Mississippi Lime, Oklahoma 0.7194%
In addition, four new wells have already been proposed on the acquired acreage and are waiting to spud.

Magnolia has elected to participate in these wells, the drilling costs for which are included in the purchase price of the acquisition. Participating in the following four new wells: Well Name Targeted Formation Operator Magnolias WI/NRI Louis 7-2MH Mississippi Lime, Oklahoma Calyx 0.555%/ 0.449% Campbell 1-17H Mississippi Lime, Oklahoma Truevine 0.112%/ 0.089% Wolf 1H-25 Mississippi Lime, Oklahoma Highmount 1.562%/ 1.25% McClure 36-2H Mississippi Lime, Oklahoma Highmount 0.070%/ 0.0552%
The acquisition includes acreage upon which the Miss Frank 1-6H well (Miss Frank) is located.

As a result of the purchase, Magnolias WI/NRI in Miss Frank increases to 4.648% and 3.672% respectively from 0.686% and 0.557% previously.

Miss Frank is operated by Devon Energy and is currently waiting to spud. Transaction with North American Petroleum plc As part of its ongoing strategy to diversify its portfolio and maintain a broad spread of interests, the Company has agreed to sell a 2% leasehold interest in 13 individual sections of its currently held inventory, representing 166.4 net acres, to North American Petroleum plc (NAP).

Following this transaction, Magnolia will retain an interest of up to 22.5% in these 13 sections.

Under the terms of the transaction, upon payout (i.e.

when drilling costs have been recovered), 25% of NAPs NRI will be reassigned (Back-in) to Magnolia. As a result of this transaction, NAP has the right to participate in 13 possible wells and up to 26 increased density wells to optimise the recovery of reserves in each individual unit. ** 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/Luke Cairns Northland Capital Partners Limited +44 20 7796 8800 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 focussed, oil and gas exploration and production company.

Its portfolio includes interests in 104 producing properties as well as 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 104 Being Drilled / Completed 12 Elected to participate / waiting to spud 18 TOTAL 134
This summary 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.
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