MAGNOLIA PETROLEUM PLC: Spudding of Bakken Well Operated by Marathon Oil
MAGNOLIA PETROLEUM PLC: Spudding of Bakken Well Operated by Marathon Oil Magnolia Petroleum Plc / Index: AIM / Epic: MAGP / Sector: Oil & Gas
8 February 2013
Magnolia Petroleum Plc(`Magnolia' or `the Company')
Spudding of Marathon Oil Operated Helgeson Well targeting the Bakken Formation,
Magnolia Petroleum plc, the AIM quoted US onshore focused oil and gas exploration and production company, is pleased to announce that the Helgeson 41-30H well (`Helgeson' or `the Well'), a horizontal well operated by Marathon Oil (`Marathon') targeting the proven Bakken formation, North Dakota, commenced drilling on 4 February 2013. Magnolia holds a 5.428% working interest and a 4.071% net revenue interest in Helgeson. As announced on 24 January 2013, the estimated total cost of the Well is US$8,562,000 of which Magnolia's share is US$464,745.
Other Well Updates
The Company has also been informed by the relevant operators of a change in status in the following wells in which it participates:
Well Formation Status NRI % Operator
Nighswonger Farms Mississippi Drilling 3.125% / Slawson (renamed Paul) Lime, Exploration 2815 1-13H Oklahoma 2.24187%
BB Rice#2 Bakken, Drilling 0.11719% / Hess
North Dakota Corporation 0.0878925%
BB Rice#3 Three Forks Drilling 0.11719% / Hess
North Dakota 0.0878925%
Rita Whittington, COO of Magnolia, said, "We are pleased to announce additional drilling alongside leading operators such as Marathon Oil and Statoil. This drilling activity is a continuation of the momentum created last year when we significantly increased our acreage and the number of potential drilling locations in proven US onshore formations. As these and other wells come into production, we should see further increases in revenue and cash flow and we look forward to providing updates in our final results and the recently commissioned Reserves Report."
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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 91 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 19
Elected to participate / waiting to 12 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.
Total US onshore net acreage 12,794.16 acres
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