🕐12.12.13 - 09:27 Uhr
MAGNOLIA PETROLEUM: EXCELLENT INITIAL PRODUCTION AT 4 STATOIL OPERATED WELLS IN
NORTH DAKOTA ADD 156 BOEPD TO MAGNOLIAS NET PRODUCTION WITH 47 WELLS UNDER DEVELOPMENT FURTHER STRONG GROWTH EXPECTED
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 Magnolias net production.
This update is in line with the Companys 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
Formation
Operator
Gross IPR
Magnolias NRI %
Net IPR
Jake 2-11 6H
Bakken, North Dakota
Statoil
3,315 bopd
1.465
49 bopd
Jake 2-11 5TFH
Three Forks Sanish, North Dakota
Statoil
2,430 bopd
1.465
36 bopd
Jake 2-11-4H
Bakken, North Dakota
Statoil
2,543 boepd
1.465
37 boepd
Jake 2-11-3TFH
Three Forks Sanish, North Dakota
Statoil
2,300 boepd
1.465
34 boepd
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 Magnolias 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 / 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 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 spud
35
TOTAL
180
[cid:image002.png@01CECBDD.61F8A860]
Frank Buhagiar
St Brides Media & Finance Ltd
3 St Michaels Alley, London, EC3V 9DS
www.stbridesmedia.co.uk
Tel: 0207 236 1177 | Mob: 07788410221 | Twitter: @StBrides1