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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Of course bitcoin is a bubble – a bubble you can’t ignore
Bitcoin

Of course bitcoin is a bubble – a bubble you can’t ignore

Bitcoin’s wild ride is being called a bubble by many. And it is, says Dominic Frisby. But that’s not necessarily a bad thing. And it’s a bubble in whi…
13 Jan 2021
A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021