Magnolia Petroleum expands presence in Montana

AIM-listed oil and gas group Magnolia Petroleum is to buy 985 net mineral acres in the Bakken/Three Forks Sanish Formation, Montana, for over half a million dollars.

AIM-listed oil and gas group Magnolia Petroleum is to buy 985 net mineral acres in the Bakken/Three Forks Sanish Formation, Montana, for over half a million dollars.

The US-focused producer said on Friday morning that this transaction will raise its total acreage acquired in the district to 7,866 net mineral acres.

The total cost of the purchase is $546,000 and will be funded by the firm's existing cash balances.

"Following on from our expansion in November 2012 into Daniels County, Montana, we are pleased to further extend our interest in the area with the acquisition of a further 985 net mineral acres," said Magnolia's Chief Operating Officer Rita Whittington.

"We believe the area has the potential to become a significant extension for production from the Bakken/Three Forks Sanish formations and a number of companies have drilling programmes in the area planned for 2013."

Magnolia has interest in over 60 producer properties and significant acreage in two major project areas, Bakken and Woodford and Hunton formations in Oklahoma. As of the close of trade on Thursday, the company has a market capitalisation of £32.96m.

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
Gold has been incredibly boring to own – but that’s no bad thing right now
Gold

Gold has been incredibly boring to own – but that’s no bad thing right now

Stocks, bonds and cryptocurrencies have all seen big falls this year. But gold remains at its one-year average. It may be dull, but it’s doing what it…
29 Jun 2022