Magnolia Petroleum Plc Production Update for Three US Onshore Wells
January 03 2018 - 1:00AM
UK Regulatory
TIDMMAGP
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
3rd January 2018
Magnolia Petroleum plc
('Magnolia' or 'the Company')
Production Update for Three US Onshore Wells
Magnolia Petroleum plc, the AIM quoted US focused oil and gas exploration and
production company, is pleased to provide a production update for three new
wells that have recently come online and are now producing from the Mississippi
Lime formation in the prolific STACK ('Sooner Trend Anadarko (basin) Canadian,
Kingfisher counties') play in Oklahoma in which the Company has a working
('WI') / net revenue interest ('NRI'), alongside leading operators such as
Continental Resources.
Fazio 1-13MH ('the Fazio Well'), Kingfisher County, Oklahoma
The Fazio Well, which is operated by Oklahoma Energy Acquisitions, is a
recently completed horizontal Mississippi Lime Formation test. Initial
Production Rates ('IP') for the Fazio Well were 644 BOPD and 1,507 MMCFD (794
BOEPD) and during the first full month of production averaged over 589 BOPD and
1,338 MCFD, significantly higher than the pre-drill projected IP of 258 BOPD
and 1,085 MCFD (367 BOEPD). The current projected EUR ('Estimated Ultimate
Recovery') is 240 MBO and 850 MMCFG. Magnolia has a 0.796% WI and a 0.597% NRI
in the Fazio Well.
Foree 1-18-7XH ('the Foree Well'), Blaine County, Oklahoma
The Foree Well, a horizontal Mississippi Lime Formation test that was completed
in April 2016 by the operator Continental Resources, was reported as having IP
rates of 1,411 BOPD and 3,900 MCFD (1,801 BOEPD). As at the end of November
2017, the Foree Well had recovered over 142 MBO and 715 MMCFG and is currently
producing at a rate of 90 BOPD and 613 MCFD (151 BOEPD). The projected EUR for
the Foree Well is 362 MBO and 1.97 BCFG. Already 39% of the projected ultimate
oil recovery and 36% of the projected ultimate gas recovery have been
recovered. Magnolia has a carried WI of 0.39% and a 0.29% NRI in Foree.
Houses Quarter 10-7-6XH ('the Houses Quarter Well'), Blaine County, Oklahoma
The Continental Resources operated Houses Quarter Well, a horizontal
Mississippi Lime Formation test which was completed in May 2017, had an IP of
716 BOPD and 1,702 MCFD (886 BOEPD). As at end of November 2017, 63 MBO and
245 MMCF have been recovered and the Houses Quarter Well is currently producing
over 205 BOPD and 1,200 MCFD (325 BOEPD). The projected EUR is 222 MBO and 1.4
BCFG and within just six months 28% of the projected oil reserves and 18% of
the projected gas reserves have been recovered. Magnolia has a carried WI of
0.39% and a 0.29% NRI in the Houses Quarter Well.
Magnolia CEO, Rita Whittington said, "These three wells highlight the prolific
nature of the STACK play in Oklahoma which, together with the SCOOP, is an area
where we are increasingly focusing our activity, both independently as well as
via our US$18.5 million capital management agreement with Western Energy
Development LLC. We expect to invest the initial US$500,000 from WED and
subsequent tranches we receive under the agreement into leases in these two
plays which, as well as earning fees for Magnolia, will also result in us
gaining a free carry into new wells drilled. Our focus on the highly active
STACK and SCOOP plays, together with our agreement with WED promise to
kickstart our strategy to significantly grow our production and reserves
through the acquisition and development of leases alongside established
operators such as Continental Resources. As a result, we are confident the year
ahead will see a step-up in activity and I look forward to providing further
updates on our progress."
The information contained within this announcement constitutes inside
information stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Glossary
'BOPD' means Barrels of oil per day
'BOEPD' means Barrels of oil equivalent per day
'M' means Thousand
'MBO' means Thousand Barrels of Oil
'Mcfd' means Thousand Cubic Feet per Day
'MM' means million (thousand thousand not million million), as used in
oilfield and heat content units such as MMSTB and MMBtu
'MMBbl' means Million barrels
'MMcfd' means Million Cubic Feet per Day
* * ENDS * *
For further information on Magnolia Petroleum Plc visit
www.magnoliapetroleum.com or contact the following:
Rita Whittington Magnolia Petroleum Plc +01918449 8750
Jo Turner / James Caithie Cairn Financial Advisers +44207213 0880
LLP
Nick Beeler Cornhill Capital Limited +44207710 9610
Lottie Wadham St Brides Partners Ltd +44207236 1177
Frank Buhagiar St Brides Partners +44207236 1177
Ltd
END
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