Magnolia Petroleum reassures after internet speculation

Magnolia Petroleum has said that reports made on internet bulletin boards relating to the Prucha 1-23MH and Brandt 31-28-12 1H wells in the US derive from early 24-hour test runs by the operator rather than initial production rates.

Magnolia Petroleum has said that reports made on internet bulletin boards relating to the Prucha 1-23MH and Brandt 31-28-12 1H wells in the US derive from early 24-hour test runs by the operator rather than initial production rates.

The AIM-listed oil and gas exploration and production company cautioned investors that there is no simple correlation between the results of a 24-hour test run and the eventual initial production rates and that the former can be "misleading".

It said such test runs are undertaken as part of the standard practice and provide a guide to the operator as to the appropriate actions required to bring the well into full production.

It added that it will inform shareholders of the results once it has been apprised of initial production rates.

The share price rose 1.39% to 3.65p by 10:05.

NR

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