Magnolia Petroleum buys share in three new wells

Magnolia Petroleum, a US focused oil and gas exploration and production company, has announced its participation in three further wells in proven onshore oil plays in Oklahoma, as part of its expansion strategy to rapidly build production and revenues.

The first of these is the Brandt horizontal well, which is targeting the Mississippi Lime Formation. Magnolia has a 4.1937% working interest in the well and its share of the drill costs are estimated at $155,817. The second is the Otis horizontal well, which is targeting the same site. Magnolia owns a 4.188% working interest and its share of the drill costs are estimated at $157,628.

The firm has a 0.0694% working interest in Campbell 1-H, the third horizontal well, which targets the Woodford Formation. Magnolia's contribution to the costs is estimated at $6,593.

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The company currently has interests in 80 producing properties, with a further four currently being drilled/completed and now an additional 12 waiting to be drilled.

Magnolia's Chief Operating Officer, Rita Whittington said: "we are continuing to build a pipeline of future wells which, once drilled, will add to our portfolio of producing wells in proven US onshore oil plays such as the Bakken/ Three Forks Sanish, North Dakota and the Mississippi Lime and Hunton/ Woodford, Oklahoma.

"Importantly, the Brandt, Otis and the previously announced Thomason and Montecristo wells show our average working interests are on the rise, in line with our stated strategy."

The share price rose 1.05% to 2.40p by 12:02.

NR