25% Working Interest in Devon Energy Well in Oklahoma
PR NewswireMagnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas13 August 2012 Magnolia Petroleum Plc (`Magnolia' or `the Company') 25% Working Interest in Mississippi Lime Well Operated by Devon EnergyMagnolia Petroleum Plc, the AIM quoted US focused oil and gas exploration andproduction company, is pleased to announce its participation in a welltargeting the proven Mississippi Lime formation, Oklahoma, in which the Companyhas a 25% working interest and a 18.75% net revenue interest. This representsMagnolia's largest interest in a non-operated well to date and is in line withits expansion strategy to significantly build production and revenues.The Prucha 1-23MH (`Prucha') horizontal well is targeting the Mississippi LimeFormation and is operated by Devon Energy Production Company (`Devon') aleading independent energy company. Magnolia acquired its interest in Pruchavia a farm-in at no cost to the Company and was included in the acquisition ofleases as announced on 11 June 2012. Total drill costs are estimated atUS$4,277,500 with the Company's 25% working interest in the well estimated atUS$1,069,375. Prucha has already been drilled and is currently waitingcompletion.The participation in Prucha is in line with the Company's stated strategy torapidly grow production and revenues by significantly increasing both theaverage size of its net revenue interests and the number of producing wells inproven hydrocarbon formations, including the Bakken/Three Forks Sanish, NorthDakota, and the Mississippi Lime and Hunton/Woodford, Oklahoma. Magnoliaparticipates in 81 producing properties, and following today's announcement, afurther 10 are currently being drilled/completed and another seven waiting tospud.Magnolia COO, Rita Whittington said, "We are tremendously excited about thePrucha well. With a working interest of 25%, it represents a step change in thelevel of our operations and the beginning of a new phase in the development ofour Company. Prucha is also the first well in which we are participating withDevon Energy, adding another highly respected name to the roster of establishedoperators with whom we have a commercial relationship."The Prucha well is an example of the opportunities that we are now in aposition to take advantage of following the recent placing and signing of the 10m Darwin Financing Facility. At the same time, Magnolia is in a strongerposition to pursue the acquisition of additional leases that meet our criteriaand as a result, we are confident the momentum that is behind the Company canbe maintained and built upon. We are making great strides towards our overallgoal of building a significant oil and gas company and I very much look forwardto providing updates on our progress." ** ENDS **For further information on Magnolia Petroleum Plc visitwww.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 acquisitionof 800 gross acres with a 100% working interest in Osage County, Oklahoma, asannounced on 10 February 2012. These four wells are currently `shut in' andwill require a workover programme at some point in the future to bring backinto production.ENDThe content and accuracy of news releases published on this site and/ordistributed by PR Newswire or its partners are the sole responsibility of theoriginating company or organisation. Whilst every effort is made to ensure theaccuracy of our services, such releases are not actively monitored or reviewedby PR Newswire or its partners and under no circumstances shall PR Newswire orits partners be liable for any loss or damage resulting from the use of suchinformation. All information should be checked prior to publication.