MAGNOLIA PETROLEUM PLC: Commencement of Drilling of Two Statoil Operated Wells
MAGNOLIA PETROLEUM PLC: Commencement of Drilling of Two Statoil Operated Wells Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
7 November 2012
Magnolia Petroleum Plc(`Magnolia' or `the Company')
Commencement of drilling of two Statoil operated wells in Bakken/Three Forks
Sanish, North Dakota, and Operations Update
Magnolia Petroleum Plc, the AIM quoted US onshore focused oil and gas exploration and production company, announces that drilling has commenced at the Jake 2-11 1H and the Jake 2-11 TFH wells operated by Statoil ASA (`Statoil'), successor to Brigham Oil & Gas, L.P., and targeting the prolific Bakken/Three Forks Sanish formations, North Dakota. An update is also provided on Magnolia's activities across its portfolio of interests in proven oil plays including the Mississippi Lime and Woodford/Hunton formations in Oklahoma.
The Jake 2-11 1H horizontal well located in Williams County, North Dakota, is targeting the Bakken Formation and is operated by Statoil, a leading energy company. The Jake 2-11 TFH horizontal well, also operated by Statoil, is using the same pad as the Jake 2-11 1H well to target the Three Forks Sanish Formation. Total drill costs for the Jake wells are estimated at US$10,215,000 each, with the Company's 1.9531% working interest in each well estimated at US$199,509. Magnolia's net revenue interest is 1.4648%.
Magnolia has been advised by Statoil that four further "Jake" wells, in which Magnolia will have a working interest are scheduled to spud early 2013. These wells will be drilled on the same pad as the Jake 2-11 1H and the Jake 2-11 TFH.
Magnolia COO, Rita Whittington said, "Statoil has reported some of the best initial production rates in this region. With this in mind, we are delighted that the two Jake wells have commenced drilling and that four additional wells in Williams County, also operated by Statoil, are due to be drilled in early 2013."
Details of Two New Wells Waiting to spud in Oklahoma
Cox 1-29H horizontal well targeting the Hunton Formation,Oklahoma.Magnolia has a 2.9167% working interest and a 2.1875% net revenue interest in the well which is operated by Crown Energy. Total drill costs are estimated at US$2,907,500 with the Company's share US$84,803.
Walker 2-29 well targeting the Viola Formation, Oklahoma. Magnolia has a 1.1113% working interest and a 0.8335% net revenue interest in the well which is operated by Transpro. Total drill costs are estimated at US$768,423 with the Company's share US$8,539. This is an increased density well to the Walker 1-29, which paid out in less than 18 months, to optimise the recovery of all the reserves. The site is currently being prepared for drilling ahead of spud.
The Company has also been informed by the relevant operators of a change in status for the following wells:
Well Formation Status NRI % Operator
Prucha1-23MH Mississippi Production 18.75 Devon Energy
facilities and pipeline have been installed - frac water currently being extracted
Curtis Kerr 24-8H Bakken Undergoing fracture 1.46677 Marathon
Nicky Kerr 14-8 Bakken Undergoing fracture 1.46677 Marathon
Montecristo 6-1H Mississippi Waiting on 5.3486 Cisco
installation of pumping unit
Lois Rust 7-27-12 Mississippi Sales line capacity 1.8678 Chesapeake 1H is being increased.
Waiting on installation
Thomason 10-27-12 Mississippi Sales line capacity 9.375 Chesapeake 1H is being increased.
Waiting on installation.
Bowen 3-29 Wilcox Expected to spud in 1.736006 Basis
** 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
Antony Legge/James Thomas Daniel Stewart & Company Plc +44 (0) 20 7776 6550
John Howes/John-Henry Wicks Northland Capital Partners +44 (0) 20 7796 8800
Lottie Brocklehurst St Brides Media and Finance +44 (0) 20 7236 1177
Frank Buhagiar St Brides Media and Finance +44 (0) 20 7236 1177
Magnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas exploration and production company. Its portfolio includes interests in 84 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
Being Drilled / Completed 15
Elected to participate / waiting to 15 spud
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.
-0- Nov/07/2012 11:17 GMT