MAGNOLIA PETROLEUM PLC - 25% Working Interest in Devon Energy Well in OklahomaPR Newswire
Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
13 August 2012Magnolia Petroleum Plc (`Magnolia' or `the Company')
25% Working Interest in Mississippi Lime Well Operated by Devon Energy
Magnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration and production company, is pleased to announce its participation in a well targeting the proven Mississippi Lime formation, Oklahoma, in which the Company has a 25% working interest and a 18.75% net revenue interest. This represents Magnolia's largest interest in a non-operated well to date and is in line with its expansion strategy to significantly build production and revenues.
The Prucha 1-23MH (`Prucha') horizontal well is targeting the Mississippi Lime Formation and is operated by Devon Energy Production Company (`Devon') a leading independent energy company. Magnolia acquired its interest in Prucha via a farm-in at no cost to the Company and was included in the acquisition of leases as announced on 11 June 2012. Total drill costs are estimated at US$4,277,500 with the Company's 25% working interest in the well estimated at US$1,069,375. Prucha has already been drilled and is currently waiting completion.
The participation in Prucha is in line with the Company's stated strategy to rapidly grow production and revenues by significantly increasing both the average size of its net revenue interests and the number of producing wells in proven hydrocarbon formations, including the Bakken/Three Forks Sanish, North Dakota, and the Mississippi Lime and Hunton/Woodford, Oklahoma. Magnolia participates in 81 producing properties, and following today's announcement, a further 10 are currently being drilled/completed and another seven waiting to spud.
Magnolia COO, Rita Whittington said, "We are tremendously excited about the Prucha well. With a working interest of 25%, it represents a step change in the level of our operations and the beginning of a new phase in the development of our Company. Prucha is also the first well in which we are participating with Devon Energy, adding another highly respected name to the roster of established operators with whom we have a commercial relationship.
"The Prucha well is an example of the opportunities that we are now in a position to take advantage of following the recent placing and signing of the 10m Darwin Financing Facility. At the same time, Magnolia is in a stronger position to pursue the acquisition of additional leases that meet our criteria and as a result, we are confident the momentum that is behind the Company can be maintained and built upon. We are making great strides towards our overall goal of building a significant oil and gas company and I very much look forward to providing updates on our progress."** ENDS **
For further information on Magnolia Petroleum Plc visit www.magnoliapetroleum.com or contact the following:Steven Snead Magnolia Petroleum Plc +01 918 449 8750Rita Whittington Magnolia Petroleum Plc +01 918 449 8750Antony Legge / James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550John Howes / John-Henry Northland Capital Partners +44 (0) 20 7796 8800Wicks LimitedLottie Brocklehurst St Brides Media and Finance +44 (0) 20 7236 1177 LtdFrank Buhagiar St Brides Media and Finance +44 (0) 20 7236 1177 LtdNotesMagnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas explorationand production company. Its portfolio includes interests in 81 producing andnon-producing assets, primarily located in the highly productive Bakken/ThreeForks Sanish hydrocarbon formations in North Dakota as well as the oil richMississippi Lime and the substantial and proven Woodford and Hunton formationsin Oklahoma.Summary of WellsCategory Number of wellsProducing 81Being Drilled / Completed 10Elected to participate / waiting to 7spudTOTAL 98Notes
*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.