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.

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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".

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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.

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